Customary land ban angers Puta
By Godfrey Chikumbi in Kawambwa
Mon 16 Dec. 2013, 14:01 CAT
COMMENT - This is why the neolibera dogma of wanting title deeds so that land can be collateral for banks to lend money is such a bad idea. There are too many poor people around just to give people land only. There has to be a comprehensive agricultural development campaign, to provide people with access to small machinery, markets, and advisers - and permaculture is the way to go. - MrK
SENIOR Chief Puta of the Bwile people in Chienge district says the decision by Minister of Lands Harry Kalaba to ban the sale of customary land has angered chiefs in the country.
The government has with immediate effect banned the sale of customary land. Addressing journalists in Lusaka last week, Kalaba directed the Commissioner of Lands and councils countrywide not to process any papers relating to the sale of customary land.
Kalaba also explained that customary land which had been illegally sold would be repossessed and that the ministry would carry out an audit on such land. But chief Puta said the government decision had annoyed him and other chiefs in the country.
He said it was a sign of disrespect and negligence for Kalaba to accuse chiefs of selling land without specifying particular chiefs.
"Honourable Kalaba shouldn't scandalise chiefs. The whites (colonial masters) respected us that's why they recognised us as chiefs, senior and paramount chiefs. His (Kalaba) statement has angered all the chiefs in the country. He should mention chiefs who have been selling land. If he has some chiefs where he comes from, they should be made to answer to the charges in the House of Chiefs. My tradition in Bwile chiefdom doesn't allow me to sell land, we have the Bwile Development Trust chaired by a chairperson," he said.
"If you want a mine in the chiefdom, you can write to the Bwile Royal Council and we can give you with a percentage to the Bwile Development Trust and that money goes to develop the chiefdom."
He said the ban on the sale of customary land did not affect his chiefdom because there was a system that dealt with land and not him as a traditional leader.
"If you come to my chiefdom looking for a mine, it is not the senior chief to issue a licence, it is the Ministry of Mines. I just issue a letter of consent. Now who is more corrupt between the one who issues a licence and the one who just consents?" he asked.
He said as a custodian of customary land, he safeguarded land for his subjects and had power to apportion land to whoever applied through the Bwile Royal Council.
The traditional leader said he was disapointed that the statement was coming from Kalaba who he said came from the royal family.
He claimed that Kalaba issued the directive out of excitement without knowing it would annoy and hurt chiefs.
"Honourable Kalaba is our own son as a prince who should have respect for chiefs. I don't think President (Michael) Sata can tell him to do that; the Head of State has respect for chiefs, that's why he created the Ministry of Chiefs and Traditional Affairs. But we don't allow those negligent and disrespectful statements, it pains me a lot," said Chief Puta.
"They (government) are locking themselves, you know you can't do anything in the chiefdom without the hand of the chief. I don't know why these politicians forget so easily. They only respect us during campaigns; after the elections they forget about us," he said.
Labels: CHIEF PUTA, FDI, HARRY KALABA, LAND RIGHTS
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KCM has insulted govt - Musukwa
By Misheck Wangwe in Kitwe
Mon 11 Nov. 2013, 14:01 CAT
MINES deputy minister Richard Musukwa says KCM management has persistently insulted the intelligence of the government by giving flimsy and inconsistent reasons over its intentions of mass layoffs.
Meanwhile, ZEMA is investigating KCM and other mining houses on latest reports of pollution of the Kafue River, the Mwambashi stream and other sources of water supply on the Copperbelt.
The government has since announced plans to constitute a team of experts to investigate KCM's operations.
In an interview in Kitwe, Musukwa said the investors in KCM had seriously disappointed the government with their behaviour and the manner in which they wanted to blackmail the government through maneuvers to retrench over 1,500people.
"They gave reasons for their latest intentions to layoff our people as automation, mechanisation and dwindling grades of the ore. The dwindling grades of the ore are a common scenario in a mining operation and it cuts across all mining companies. Any best mining operation of a world class nature like as KCM as it claimed, should be able to plan and organise operations at the lowest price and the lowest grade of the metal and that's how the copper business is managed because it is very unpredictable," Musukwa said.
"These reasons that KCM is advancing today, in case they have forgotten, are different from those they gave five months ago when they wanted to retrench 2,000 people."
He said five months ago, KCM did not mention anything to do with its plans to take the route of automation, mechanisation and challenges of dwindling grades but rather gave a set of different reasons such as fluctuating copper prices and challenges to appreciate various tax incentives that the government had put in place.
Musukwa said KCM would not be allowed to manipulate Zambians over their own mineral resources.
"People have not been very productive recently because this KCM have brought fear that they will lose jobs. People are operating as if they have no jobs, their morale is dampened. Many Zambians world over are known to be hardworking and they account for their presence at the place of work. Our wish has been that KCM must drive our people to the level of production of world class nature," Musukwa said.
Meanwhile,deputy minister of labour Rayford Mbulu said the government was managed on the premise of laws and it would not allow people to be condemned to misery by KCM and its intentions of mass layoffs.
Mbulu said KCM disrespected the government from the time it announced its intentions to cut jobs of about 1,529 mineworkers through the media without even communicating to the state.
"This government is premised on laws and these laws must be respected. What we have gotten from KCM is embarrassing to say the least. They (KCM management) must know that the employment and labour relations Act Cap 268of the laws must be respected to the latter.
And KCM breached this when they chose to go to the media before they could even engage government," said Mbulu."Acts of intransigency from KCM will never be tolerated."
KCM chief executive officer Kishor Kumar announced at a press briefing in Kitwe a week ago the company's intentions to lay off 1,529 mineworkers.
Kumar cited dwindling copper ore and the company's new route of mechanization and automation as major reasons for the layoffs.
President Michael Sata, however, warned Kumar that he would be sorted out if he attempted to fire even a single employee and that KCM's operating license would be revoked if the mining company wanted to blackmail government with mass layoffs following the decision to stop the export of copper concentrates.
On Wednesday, it was learnt that KCM had in fact terminated employment of about 76 employees, a situation that angered government.
Labour minister Fackson Shamenda later told journalists in Lusaka that government was extremely disappointed and annoyed with Kumar who had dismissed President Sata's warning that the government would revoke the company's license if it fired even one worker, as mere rhetoric.
On Friday, Kumar left the country in unclear circumstances before he could be taken to task by the government over his statement against President Sata's directive.
Vedanta Resources, the majority shareholders in KCM, have since appointed a KCM vice-president for Human Capital Management David Kaunda to act as chief executive officer in the absence of Kumar.
And in an interview yesterday, Zambia Environmental Management Agency northern region manager Patson Zulu said the matter was being seriously investigated and KCM had already been written to.
Minister of Local Government and Housing Emerine Kabanshi on Thursday warned Konkola Copper Mines over its alleged pollution of the Kafue River, saying it had resulted into the closure of two water treatment plants for Nkana Water and Sewerage Company.
"We have recorded such cases and I can say it's not only KCM, we are also investigating other mining companies, the polluters of the surface water bodies on the Copperbelt. Apparently it's not just the Kafue River but also other streams critical to human life. We have identified a number of firms that will be summoned over this pollution and we are meeting them because this is a matter of urgency and it's very serious," Zulu said.
He warned that mining companies that were culprits of the pollution would be taken to court and risked having their plants shut down for breaking the law.
Zulu said over KCM and allegations of pollution, ZEMA was closely working with the Department of Water Affairs, National Water and Sanitation Council as well as Nkana Water and Sewerage Company to establish facts and the extent of pollution.
"For KCM, we will not give more details because the matter is being investigated and we will be pre-empting the minister's statement. It's only fair that we leave it to the minister and details will be availed to you at a later stage," Zulu said.
At a press briefing in Lusaka last week, Kabanshi warned KCM that the government would deal with it firmly if it fails to stop the excessive pollution levels which had affected Mwambashi dam in Kalulushi and Mutipa stream in Chingola on the Copperbelt Province.
Kabanshi said the government will be left with no option but to shut down KCM's operations at their tailings leach plant until the company puts up remedial measures to protect people's lives.
She further said the government would not allow a situation where mining companies continue to deliberately fail to meet environmental regulations.
Kabanshi, who on Saturday visited NWSC in Kitwe, directed KCM to take its environmental protection obligations seriously and stop discharging mining effluents carelessly.
Labels: DAVID KAUNDA, FDI, KCM, RICHARD MUSUKWA, TAX EVASION
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(LUSAKATIMES) President Sata threatens to revoke KCM’s licence
Time Posted: November 4, 2013 1:56 pm
President Sata addresses a Cabinet meeting on the issue of KCM laying off 1500 workers
President Michael Sata has threatened to revoke Konkola Copper Mines mining licence if the mining giant proceeds with its plans to lay off 1,500 workers.
President Sata said his government will not allow KCM to fire even one miner.He said he will revoke the licence for KCM if the mining firm dares government with its plans.
President Sata was speaking at State House Monday morning when he opened a cabinet meeting.
President Sata has since warned KCM Chief Executive Officer Kishore Kumar against exploiting Zambians.He said the PF government is aware that KCM wants to use blackmail following the revocation of SI 89.
“These mining companies want to be exporting Copper concentrates to avoid paying taxes. Mr Shamenda, please go and tell Mr Kumar that we will take away his licence if he lays off even one worker, then we will take away his licence from him, that’s the easy way of we laying him off,” President Sata said.
President Sata also directed Finance Minister Alexander Chikwanda to increase revenue collection from mining sector.
According to KCM, the move is in line with its continued restructuring of operations.
The company said it was moving towards mechanisation and automation in view of the decreased copper grades at some of its mines.
Company chief executive officer Kishore Kumar announced the development yesterday in Kitwe, adding that the process of laying off the 1, 529 employees had since commenced.
Labels: ALEXANDER CHIKWANDA, FDI, KCM, MICHAEL SATA, STATUTORY INSTRUMENT 89, TAX EVASION, VEDANTA
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KCM to retrench 1,529 workers
By Darious Kapembwa in Kitwe
Sat 02 Nov. 2013, 14:00 CAT
KONKOLA Copper Mines has announced plans to outplace over 1,500 employees as the mining giant pursues a mechanization programme for all its operations.
At a press briefing in Kitwe yesterday, KCM chief executive officer Kishor Kumar said current productivity at eight tonnes per year per employee compared to global norms of 100 tonnes was unsustainable.
"This is due to the fact that KCM Nchanga operations are still using the costly conventional methods of mining compared to mechanised mining which most of our global peers have adopted. In the continuing restructuring of our operations, KCM is moving towards mechanisation and automation of all its operations to ensure efficiency and higher productivity," Kumar said. "The resultant changes may affect upward of 1,529 members of our staff, through labour outplacement."
Kumar said KCM would follow a well structured process to minimize the impact on the affected employee.
Asked what he meant by following a structured process, Kumar he could not categorically answer.
Asked what he meant by labour outplacement, Kumar explained that it was a restructuring process and that some employees not relevant to the current mining operations would be laid off.
He also said the number would gradually increase after 2017.
Further asked whether government was aware of its plans, Kumar said ZCCM-IH was on the KCM board and were a key stakeholder who were well aware of the process.
"So government is well aware of this operation," he said.
He said government was aware the lifespan of Nchanga is coming to an end in 2016.
Konkola mine in Chililabombwe has 280 million of copper ore to last about 25 to 30 years.
A couple of months ago KCM was forced to shelve plans to retrench about 2000 people owing to low productivity and high operational costs.
Labels: FDI, KCM, MINING, UNEMPLOYMENT
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KCM to retrench 1,529 workers
By Darious Kapembwa in Kitwe
Sat 02 Nov. 2013, 14:00 CAT
KONKOLA Copper Mines has announced plans to outplace over 1,500 employees as the mining giant pursues a mechanization programme for all its operations.
At a press briefing in Kitwe yesterday, KCM chief executive officer Kishor Kumar said current productivity at eight tonnes per year per employee compared to global norms of 100 tonnes was unsustainable.
"This is due to the fact that KCM Nchanga operations are still using the costly conventional methods of mining compared to mechanised mining which most of our global peers have adopted. In the continuing restructuring of our operations, KCM is moving towards mechanisation and automation of all its operations to ensure efficiency and higher productivity," Kumar said. "The resultant changes may affect upward of 1,529 members of our staff, through labour outplacement."
Kumar said KCM would follow a well structured process to minimize the impact on the affected employee.
Asked what he meant by following a structured process, Kumar he could not categorically answer.
Asked what he meant by labour outplacement, Kumar explained that it was a restructuring process and that some employees not relevant to the current mining operations would be laid off.
He also said the number would gradually increase after 2017.
Further asked whether government was aware of its plans, Kumar said ZCCM-IH was on the KCM board and were a key stakeholder who were well aware of the process.
"So government is well aware of this operation," he said.
He said government was aware the lifespan of Nchanga is coming to an end in 2016.
Konkola mine in Chililabombwe has 280 million of copper ore to last about 25 to 30 years.
A couple of months ago KCM was forced to shelve plans to retrench about 2000 people owing to low productivity and high operational costs.
Labels: FDI, KCM, MINING, UNEMPLOYMENT
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Zimpapers in drive to boost investment in Bulawayo
October 22, 2013 Wenceslaus Murape Headlines, Top Stories
Top1
Information, Media and Broadcasting Services Minister Professor Jonathan Moyo (centre) confers with the Economic and Commercial Counsellor of the Chinese Embassy Mr Han Bing (left) and Zimpapers Bulawayo Branch general manager Mr Marks Shayamano during a tour of Typocrafters premises in the Belmont Industrial area in Bulawayo yesterday
Bulawayo Bureau
ZIMPAPERS, in conjunction with Chinese investors, is working on a huge investment to turn the defunct Typocrafters into a modern printing firm that will tap into the local and regional markets.Information, Media and Broadcasting Services Minister Professor Jonathan Moyo, his deputy Cde Supa Mandiwanzira, Zimpapers chief operating officer and editor-in-chief Pikirayi Deketeke and officials from the Chinese Embassy, yesterday toured Typocrafters premises in Belmont to assess its suitability for the new deal.
Chinese officials expressed satisfaction with the facilities and pledged to compile an urgent report for their Government recommending investing in Bulawayo.
Addressing the delegation, Prof Moyo said: “The place appears like some ruins, but the truth is that a lot of good business for Zimpapers used to come from here. This is a good example of what happens if you allow technology to go ahead of you.
“What is important is that there is a bright future for this place. It is still suitable to house state-of-the-art printing equipment in the same manner with what is happening in Harare . The new printing press will be able to print Chronicle and Sunday News from here and other titles.
“It will also reach other markets, for example in Botswana and South Africa. We are also talking about printing commercially and this will create more opportunities.”
Prof Moyo said the move would cut production costs for Zimpapers as it would be able to print The Herald and The Sunday Mail for sale in the southern region, while Chronicle and Sunday News would also be printed in Harare.
He said the fruition of the initiative would not only improve economic efficiency for the public media, but increase the spreading of information across the country.
“We have been engaging other media houses talking about the issue of sharing facilities and I have no doubt they will be interested in taking a look into this initiative.
“It will be good that we do not consider this as a Zimpapers facility, but a national facility for the growth of all media houses. We are keen to move forward as soon as possible,” said Prof Moyo.
“This will make the papers reach out to all corners of the country, which is currently not possible but necessary given the importance of information. We prioritised this visit and we are grateful that you were able to come here.”
He instructed management to provide the Chinese officials with the required technical information and specifications and described the initiative as a fantastic move for Zimpapers.
Chinese Embassy economic counsellor Mr Han Bing said he was satisfied with the facility, saying it was suitable to house modern equipment.
“We visited this site to see if it was suitable for the project of a new printing line. We will report back to China what we saw today and lobby our Government to consider investing here,” said Mr Han, who could not be drawn into disclosing the value of the proposed investment.
“We needed specifications about this place, its size, condition and design and we are impressed. The building itself is nice and the conditions are excellent and suitable for a modern company. It just needs a few renovations.”
Cde Mandiwanzira said the scope of the proposed investment showed Government’s commitment towards reviving industries, particularly in Bulawayo.
The proposed investment comes as a relief to Bulawayo, where about 100 firms have closed in the last decade, leaving thousands jobless.
“This reflects a lot of things that we have been talking about concerning revival of industry, especially in this part of the country. It shows our commitment to revive Bulawayo industry and Matabeleland region as a whole,” said Cde Mandiwanzira.
Mr Deketeke said the company has been engaging Chinese investors for a long time seeking partnership for recapitalisation.
“We have been talking to China in the past under the Government-to-Government co-operation and they have expressed interest in giving us a grant or interest-free loan, which will be facilitated to us in the form of a new printing press,” said Mr Deketeke.
“This is a ghost that needs to be revived and we will revive it and have a fully fledged factory. This visit is part of that engagement process and it has not been finalised. We are happy that they have seen our facility and they are impressed with it.”
At the moment, Typocrafters lies desolate with mounds of obsolete equipment and disused offices. Part of the building has been leased to a departmental store, Fazak, and Sunset Milling Company on an annual contract.
Zimpapers Bulawayo Branch general manager Mr Marks Shayamano and Chronicle editor Mduduzi Mathuthu were also part of the delegation.
Later on the delegation visited the Zimpapers Bulawayo branch where it assessed the printing press. Prof Moyo said the printing equipment at the branch was old and needed to be replaced.
He also said there was a need to give the entire building a facelift.
Labels: AMBASSADOR, CHINA, FDI, MARKS SHAYAMANO, ZIMPAPERS
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(NEWZIMBABWE, BUSINESS DAY SA) SA delegation explores Zim opportunites
15/10/2013 00:00:00
by Business Day
A SOUTH African business delegation led by the Department of Trade and Industry is holding business-to-business meetings in Harare on Tuesday to scout for investment opportunities with Zimbabwean companies.
The delegation will hold a conference in Bulawayo, the country’s industry and manufacturing hub, on Wednesday.
The business-to-business meetings are expected to create the ground for potential investment deals between South African and Zimbabwean companies.
"FDI (foreign direct investment) by South African entities in Zimbabwe between 2003 and 2012 amounted to approximately $619m while inward FDI from Zimbabwe to South Africa amounted to approximately $154m," Department of Trade and Industry spokesman Sidwell Madupe said.
Deputy Trade and Industry Minister Elizabeth Thabethe, who is leading the delegation, said its mission was to "make sure intra-Africa trade grow(s)".
South Africa and Zimbabwe have a strong trade relationship, with South African companies commanding a heavy presence in sectors of the Zimbabwean economy such as mining, manufacturing and agro-processing.
Zimbabwe imports most of its consumable and finished products from South Africa.
Aside from Tuesday’s business meetings, there will also be time for the delegation to tee off in a golf tournament hosted by the Zimbabwe Investment Authority (ZIA).
Labels: FDI, SIDWELL MADUPE, SOUTH AFRICA
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(NYASATIMES) UN rubbishes Malawi’s Paladin uranium deal, fertilizer subsidy
By Hudson Mphande, Nyasa Times
July 23, 2013
United Nations Special Raportuer on the Right to Food Olivier De Schutter who was in Malawi for an assessment of the food situation in the country has rubbished Kayerekera uranium mine deal between Malawi and Australian Paladin Mining Company saying the Southern African country has had a raw deal that is robbing the poor.
The UN Raportuer said the uranium mining deal was one of the investments in Malawi through which the country is losing resources that could otherwise make a difference in food security and other pro-poor initiatives. He said in the life span of the mine Malawi is expected to lose almost US$281 million.
The Special Raportuer also rubbished the country’s food security policies saying even the high-profile Farm Input Subsidy Programme (Fisp) has failed to rid the country of chronic food security and malnutrition.
“Mining companies are exempt from customs duty, excise duty, value added taxes on mining machinery, plant and equipment. They can also sign special deals on the rate of royalty owed to the government. I believe that there are more reasons that investors would come to Malawi without such incentives,” he said.
UN official Oliver De Schutter says Malawi losing out on Kayelekera deal
UN official Oliver De Schutter says Malawi losing out on Kayelekera deal
De Schutter was addressing journalists in the capital Lilongwe at the end of his 11-day tour of the country.
He bemoaned that due to illicit financial flows, tax envasion as well as tax incentives that the country offer to both domestic and foreign companies currently Malawi was failing to get maximum use of its resources.
De Schutter said that revenue losses from special tax incentives to Paladin Africa Mining alone are estimated at almost K67 billion (US$205 milion) since the mine started its operations and could reach almost K92 billion (US$281 million) over its13-year lifespan.
“Paladin alone is costing the budget more than US$20 million (almost K8 billion) a year in taxes,” he said.
He added: “I am convinced that unless combined with a comprehensive enhancement and optimisation of tax revenue, current macro-economic reforms may not have substantive positive impacts. There is need for
Malawi to examine its national tax laws and policies towards preventing illicit capital flight. As mining develops, Malawi can simply not afford business-as-usual.”
The UN Special Raportuer said it is estimated that the country has lost over 10 percent of its growth domestic product (GDP) to illicit outflows and tax evasion over the period 1980 to 2009.
FISP
On Fisp, he bemoaned that despite such high-profile food security policies, more than half of the country’s population remains in poverty with almost quarter of the population still utra-poor earning less than the recommended UN daily wage.
De Schutter said Fisp has actually failed to uplift the lives of poor Malawians despite huge sums of money going into the programme every year.
“One of the major concerns is that targetting may not be optimal as it is only those who are already better off or better connected that have access,” he said.
He blamed the Fisp for the problems that dog the country’s budget, saying the current cost of the subsidy is straining other services such as agricultural research, extention services, training, rural roads as well as delays in the implementation of the Green Belt Initiative (GBI).
De Schutter expressed doubts that Malawi will sustain the programme considering the rising costs of fertiliser imports.
He also said it is time Malawi should move beyond the fertiliser-led green revolution and embrace ‘brown’ and ‘blue’ revolutions to rebuild soil fertility and water retention.
De Schutter also specifically expressed concerns on the country’s current minimum wage currently at K371 ($1.12) per day, describing it as the lowest in the world.
He also expressed worries over the tenancy system in the tobacco industry which he said is also driving poverty and hunger in the country .
“Malawians need a durable agricultural resource base and living wages and currently they are getting neither. The policy of providing abundant, cheap and non-unioninsed labour to plantation owners must be consigned to the past,” said De Schutter.
Reaction
Commenting on the assessment by the UN official, Billy Mayaya who is chairman of the National Right to Food Network told Nyasa Times that the UN Special Rappoerteur visit to Malawi has highlighted the key issues that reinforce food insecurity.
“We commend government efforts to remedy the situation with various initiatives such as FISP. At the same time we appeal to government that there is need to put in measures to curb corruption as well as streamline targeting of the ultra poor and focus on sustainability,” Mayaya said.
“We are hopeful that the Government of Malawi will seriously consider the findings and recommendations of the UN Special Rapporteur. The key is for Parliament to support the Bill on the Right to Food which is central to realising the Progressive Realisation of the Right to Food in Malawi with a focus on putting in place mechanisms to curb violations of the Right to Food which impede food security,” he added.
The UN special rapporteur said he will give a report and his recommendations to both the UN Human Rights Commission and the Malawi Government.
Labels: FDI, FISP, MALAWI, NEOLIBERALISM, OLIVIER DE SCHUTTER, UN, URANIUM
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India to enhance economic ties with Zambia, says Mukherjee
By Chiwoyu Sinyangwe
Thu 18 July 2013, 14:00 CAT
PRESIDENT Pranab Mukherjee says Zambia's relationship with Zambia is exceptionally warm. President Mukherjee has assured President Michael Sata of his desire to further strengthen ties between the two countries.
President Mukherjee spoke yesterday when he received letters of credence from Zambia's new High Commissioner to India Brigadier General Patrick Tembo at the Rashtrapat Bhawan in New Delhi.
President Mukherjee said India looked forward to enhanced economic cooperation with Zambia through the India-Africa Forum and the Joint Permanent Commission of Cooperation.
And Brig Gen Tembo pledged to strengthen relations between India and Zambia during his tenure of office.
Brig Gen said there was need for the Joint Permanent Commission between Zambia and India which has not met since 2005, to convene as soon as possible to address matters of bilateral interest.
He thanked India for the US$50 million Line of credit towards construction of 650 rural health posts and another US$50 million earmarked for the Itedzi Tezhi Hydropower Project. Gen. Tembo also thanked the India Government for a grant of US$5 million for the social sector including health and education.
Brig Gen Tembo also invited India to attend the forthcoming United Nations World Tourism Assembly to be co-hosted by Zambia and Zimbabwe.
Labels: FDI, INDIA, PRANAB MUKHERJEE
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FedEx signs agreement to acquire Supaswift
By Henry Sinyangwe
Sat 22 June 2013, 14:00 CAT
FEDEX Corp has completed the first stage of a strategic acquisition by signing agreements to acquire the businesses operated by its current service provider Supaswift (Pty) Ltd.
In a statement yesterday, FedEx announced that it was also in discussions to acquire Supaswift's businesses in Botswana and Namibia.
According to a statement yesterday, FedEx chairman Fredrick Smith stated that the acquisitions would operate under the FedEx Express business unit and the transaction is subject to necessary regulatory approvals and customary closing conditions.
"Once the acquisition is completed, FedEx Express will have direct access across the seven markets to 39 facilities and will welcome approximately 1,000 of Supaswift's team members, who will join the ranks of more than 300,000 FedEx team members globally," Smith stated.
He stated that FedEx Express would offer a complete suite of FedEx branded export, import and domestic solutions, connecting Southern Africa to more than 220 countries and territories worldwide, enhancing customers' business flexibility and speed to market.
"The acquisition of Supaswift's businesses, once closed, will provide customers with greater access to some of the world's most rapidly growing economies," Smith said.
"It is an important step in our international growth strategy and further strengthens our FedEx Express portfolio."
Gerald Leary, president of FedEx Express Europe, Middle East, Indian Subcontinent and Africa said FedEx Express had been active in Africa since the early 1990's, through a well-established network of Global Service Providers.
And Supaswift (Pty) Ltd chief executive officer Andrew Lovell said his company was joining one of the most admired firms and best places to work globally.
"The transaction, once closed, will put us in a solid position to meet the growing needs of our customers, representing a common commitment to offer an enhanced service portfolio and superior quality to both current and prospective customers," said Lovell.
Labels: FDI, FEDEX, NEOLIBERALISM
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Pick n Pay sabotaging economy: Chinamasa
29/11/2012 00:00:00
by Paradzai Brian Paradza
JUSTICE Minister Patrick Chinamasa has accused retail group Pick n Pay of deliberately sabotaging the country’s agriculture by continuing to import fresh produce from South Africa.
South Africa-based Pick n Pay acquired a 49 percent interest in TM Supermarkets last year in a US$13 million deal which was part of the group’s regional expansion programme.
But Chinamasa told an empowerment conference in Harare that the company’s operations in the country were proving detrimental to local producers and highlighted the need to restrict certain sectors of the economy to locals.
“Personally I do not see the need to celebrate and applaud foreign direct investment in the retail, wholesale and fuel sectors; those should be reserved for local investors,” he said.
“Visit any Pick n Pay supermarket and you will see that 99 percent of their goods are imported from South Africa. In fact Pick n Pay is in support of South Africa’s export strategy. They are importing lettuce, cabbages and tomatoes products which are locally produced.
“If you look at Section 25 of the Zimbabwe Investment Act you will see there are clear distinctions and the Indigenisation Act is much clearer on which sector for foreign investors and which ones for locals. We have to empower the locals and we might need to look at legal instruments available to ensure compliance.”
Chinamasa however, said there was no conflict between investment promotion and economic empowerment adding critics of the indigenisation programme were ill informed.
“This (indigenisation) is not a policy unique to Zimbabwe. Other countries have, in one way or another, implemented it and have achieved economic growth. If you look at the so-called Asian Tigers and the BRIC countries, the indigenous ownership of the economy is critical to achieving economic growth,” he said.
“Indigenisation and FDI are mutually inclusive. Other people talk carelessly of the two as if they are mutually exclusive. Indigenisation has not stopped FDI anywhere in the world. Investors are even known to go anywhere provided there is an opportunity to make money.”
Meanwhile, the government has started consultations on the 30-yearZimbabwe Broad-based Economic Empowerment Framework 2013-2042(ZIBEEP) which is expected to fine tune the current Indigenisation Act as well as value addition.
Announcing the plan, chairperson for the Research team Jane Chipika said the policy would also help transform and integrate the SMEs sector into the formal economy.
Labels: FDI, NEOLIBERALISM, PATRICK CHINAMASA
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Investors' referendum on Zambia
Fri 21 Sep. 2012, 10:30 CAT
It seems any government that tries to fight corruption will be fought viciously by the corrupt and their defenders.
This is the experience we seem to be observing in our country. When Levy Mwanawasa tried to fight corruption, he was fought by a cross-section of our people, many of whom were unwitting defenders of the corrupt.
Some, however, had willingly sold themselves to defending the cause of the corrupt. The same thing is happening today. Michael Sata has created for himself die-hard enemies for hoisting his flag on the mast of fighting corruption. They will do everything to discredit him and try to make him appear incompetent and even corrupt. It is up to Michael and those that surround him to understand that this is a battle they are called to fight. Their opponents will tell all sorts of lies to try and discredit them and dissuade them from continuing their quest to run a clean government.
Rupiah Banda did not have this kind of problem. Rupiah was running a dirty government. And all kinds of crooks and scoundrels paraded themselves as his defenders. As long as he embraced corruption, they were happy. This is not true for Michael.
The crooks know that Michael will not defend what is corrupt and criminal. And for that reason, they will always fight him. They will even go as far as to dent the image of the country just to make sure their prophecies of doom come to pass.
This is what we have seen in relation to investor relations in the time that Michael has been President of our Republic. There are those who have spent a lot of time trying to create an impression that by correcting the corrupt dealings of Rupiah and the MMD, Michael is scaring away investors. But what kind of investor wants to operate in a corrupt environment? Certainly not clean investors. It can only be corrupt, crooked investors.
And not all investment is good for the country. Criminals must not be encouraged to invest in our economy. This is because their investment is likely to have aspects of criminality. This cannot be good for the economy in the long term.
Good investment will want to operate in a clean environment where corruption is at the lowest possible levels.
When the PF government has taken decisive steps against corrupt transactions, some have been quick to try and create panic and an impression that investment will dry up. This has fed into the empty rhetoric that the PF does not know what it is doing.
Against this background, it is interesting to note what has happened in relation to the raising of money by the government from the international capital markets. The detractors were certain that Michael's government would not be able to raise US$500 million, let alone US$750 million, from the international investing community.
Why were they so sure? According to them, Michael was scaring away investors. How? How could fighting corruption and reversing corrupt transactions scare away honest investors? It will scare away criminals, not honest investors!
The Eurobond has now allowed the international investing community to vote in their own referendum on their confidence in the PF government. They have spoken. It is up to the government to use this confidence to help our people to ensure that the resources are used properly.
This referendum allows Michael to move with confidence and ensure that the rule of law is fully entrenched. Development will not come to our country if we embrace corruption. Michael and the PF have refused to embrace corruption. And this principled position is yielding positive results.
There are politicians who have decided to defend Rupiah's corruption in the hope that it will win them support from the Eastern part of our country. Today, we have some politicians who not very long ago were publicly accusing Rupiah and his family of corruption defending him. And they are no longer talking of Rupiah's corruption. What has happened to Rupiah or to them? Were they lying to the nation when they were accusing Rupiah and his family of corruption? Or was it just part of their cheap, deceitful and unprincipled politics? They need to explain to the Zambian people why they are today defending Rupiah's corruption if they have to win back our people's support and respect.
But they are making a big political miscalculation if they think defending Rupiah's corruption will win them the political support of the people of Eastern Province. Let them ask Rupiah; he defended Frederick Chiluba's corruption but where did he end up? Rupiah thought by defending Chiluba's corruption and ensuring that he is not jailed for it would win him the political support of the people of Luapula Province, where Chiluba hailed from. Even some people in the opposition believed that Chiluba was winning Luapula for Rupiah and as a result, the political landscape had changed in his favour. It didn't happen. Chiluba failed to win Luapula for Rupiah. In the same way, Rupiah will not win them Eastern Province.
There is need to take a principled position in politics and in life in general. Of course, there is a price to pay for taking a principled position. But it is a price worth paying because in the end, principled people win the respect of the people. And with that respect, they also win the people's votes. Opportunism may appear an easy route in life. But as the Bible says, easy and wide routes usually lead to disaster.
We shouldn't fear to do the right thing simply because there are immediate negative consequences. It is said that it is better to fall with honour than to succeed by fraud.
Crooked, corrupt investors have no value to our country. And as such, corrupt investment should not be entertained for whatever reasons. There is still a lot of honest investment out there that needs to be sought. If we entertain corrupt investment, we will be keeping away honest investment. Whatever little benefits we may get in the short term from corrupt investment, they cannot in any way match the long-term benefits that honest investment brings to the country.
Labels: CORRUPTION, FDI, LEVY MWANAWASA, RUPIAH BANDA
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COMMENT - More selling out from the MDC, of which FDI minister Mashakada is a member.
Govt to relax FDI laws?
Friday, 24 August 2012 00:00
Martin Kadzere Senior Business Reporter
CONSULTATIONS over the possible exemption of new investments from complying with indigenisation provisions are underway, as Government seeks to redesign the policy to encourage more Foreign Direct Investment, Economic Planning and Investment Promotion Minister Tapiwa Mashakada has said.
“We are working on a policy that may see new FDIs being exempted from the provisions of indigenisation,” he said at the launch of Zimbabwe Australia Business Council recently.
“I want to assure potential investors that we are doing all we can to improve the business environment.”
The Indigenisation and Economic Empowerment Act requires foreign investors to have a maximum shareholding of 49 percent in local entities. But in an interview, Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere said some foreign investors were already getting “special dispensation”.
“ZIA and NIEEB are working on harmonising the laws (Investment and Indigenisation), so that there is smooth communication of these provisions to investors. With regards to exemptions of the FDIs from indigenisation, the ministry has granted special dispensation to some investments and the same can happen to future investments,” he said.
Some of the investments given special dispensation include the acquisition of Premier Banking Corporation by Ecobank and that of Ziscosteel, now NewZim Steel, by Essar Holdings.
Zimbabwe Investment Authority chief executive Mr Dominic Mbaiwa said in an interview yesterday the matter was under discussion.
“There is concern that some provisions of indigenisation might be stifling FDIs and we are in discussions with the responsible ministries and NIEEB to see the possibility of exempting new investments from the provisions of the indigenisation,” said Mr Mbaiwa.
He said business delegations coming to Zimbabwe on investment missions had raised concerns over the indigenisation policy.
Russia, for instance, wants a provision in the Bilateral Investment Protection and Promotion Agreement that it is negotiating with Zimbabwe that will exempt their investments from the indigenisation regulations.
A business delegation from Russia visiting Zimbabwe last month expressed strong interests in power, mining and infrastructural projects.
National Indigenisation and Economic Empowerment Board chairman Mr Wilson Gwatiringa confirmed “there are consultations with a view of harmonising certain sections of the Indigenisation Act and Investment Act that may be conflicting”.
But he could not give more details.
Last year, the ZIA approved investment projects worth more than US$6 billion. Zimbabwe has continued to lag behind in attracting FDIs when compared with other Southern African countries.
Last year, inflows rose by 133 percent to US$387 million, according to the United Nations Development Programme World Investment Report for 2012.
Although Zimbabwe’s FDI inflows more than doubled during the period under review, they remained low compared with other countries in the region, with Mozambique having received US$2 billion last year.
The Southern African region registered FDI inflows worth about US$6,3 billion, while that of the African continent stood at US$42,6 billion.
Analysts said investor confidence had been dented by the “increased uncertainty in policy implementation — mainly through the Indigenisation Act”.
“The empowerment drive has clearly reversed the optimism brought about by the formation of an inclusive Government,” said a Harare-based research firm.
“We strongly recommend that policymakers adopt investor friendly policies to attract much-needed Foreign Direct Investment.
“Attracting foreign capital remains critical to the recovery of the economy. Economic development and growth can be achieved through trade and investment. It is imperative that policymakers realise the negative impact recent policy announcements have had on investor sentiment,” the firm said.
Labels: FDI, INDIGENIZATION AND EMPOWERMENT ACT (ZIMBABWE), NEOLIBERALISM
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Economists speak on FDIs in Zimbabwe
Saturday, 11 August 2012 14:17
Sharon Kavhu
Zimbabwe has a lot to do in crafting policies that lure investors, economic analysts have said. The country has a high rate of returns, a key aspect needed by both domestic and foreign investors.
The country's profile is, however, failing to lure Foreign Direct Investments (FDIs).
Zimbabwe National Chamber of Commerce (ZNCC) economist Mr Kipson Gundani said there was a need for the Government to disseminate information to the respective sectors responsible for advising foreign investors.
Mr Gundani said one of the major reasons why foreign investors were shunning the local market was the lack of consistent policies.
“Our economy is uncertain due to political issues. For instance, next year we are having presidential elections and the results will affect some areas of the economy,” he said.
“The country's economic growth is guided by the (2011-2015) Medium Term Plan, but there is no guarantee that after the presidential elections, the plan will still be in existence.
“Such uncertainty results in foreign investors adopting the “wait and see policy.”
Mr Gundani said investors must be advised on the economic sector so that they can make informed decisions.
“It appears as if the Central Statistical Office does not have adequate resources and the Government must improve on matters to do with provision of services,” he said.
Although the Government launched a one-stop investment centre in 2010, the centre needs to be strengthened to facilitate the processing of investments, particularly FDIs.
Mr Gundani said Government must capacitate the one-stop centre so that it becomes competitive, just like in other countries such as Botswana where there are effective investment centres that measure to international standards.
Government has all the information that the investors need and thus it should disseminate the information to the respective investment centres to avoid the issue of red tape.
Another economist, Mr Jonathan Kadzura, said that investors are reluctant to invest in the country because of the Government of National Unity.
He said: “The Prime Minister has recently been travelling worldwide speaking negatively against the country’s economy and the President.
“Having such situations, FDIs will never invest in the country,” said Mr Kadzura.
He said the Government should craft laws to deal with people who tarnished the image of the country.
“Of course, we have a high external debt and other issues, but these cannot be solved while we have a Government that is in conflict,” he added.
“The country has resources that can attract FDIs, but they can never be realised until we have a proper Government that imposes straightforward policies that are consistent. Zimbabwe has outdated policies, particularly on labour and insolvency, and these scare away FDIs.”
Economist Mr Musabayana Nyamudzai said the Government should craft policies that were abreast with modern developments and more effective.
“Government must get rid of rigid and outdated policies and create new ones, for example, the insolvent policies which make almost an impossible exit strategy.
He added that there was a need for the Government to develop a special economic zone to attract FDIs.
Government should work on a strategic plan on how to rehabilitate the country’s infrastructure to attract FDIs.
Labels: FDI
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COMMENT - I guess it is the EU's role to break open markets in Africa. Of course they don't live by their own principles, because there are lots of restrictions on importations into Europe, and subsidies for agricultural products, which the World Bank bans in Africa (see what happened to Malawi when they supported their farmers).
Laws impeding foreign investment: EU
30/07/2012 00:00:00
by Business Reporter
THE
European Union (EU) has warned that Zimbabwe will continue to lag behind most of its SADC neighbours in attracting foreign direct investment (FDI) unless measures are taken to address the currently
prohibitive legal framework.
Having seen steady growth since the formation of the coalition government in 2009, the country’s economy has started to falter forcing the government to cut its 2012 budget as well as revise downwards growth projections for the year.
While presenting his mid-term fiscal review recently, Finance Minister Tendai Biti said Zimbabwe desperately needs to attract foreign direct investment.
"The first half of the year has been the most economically challenging in the last 40 months. This economy needs foreign direct investment to increase this little cake into a bigger cake."
But EU representative to Zimbabwe Aldo Dell'Ariccia told the Confederation of Zimbabwe Industries (CZI) annual congress in Nyanga last week that the country must address its prohibitive legislative environment in order to be competitive.
“The EU believes in the key role that the private sector/industry and its organisations have to play in Harare economic recovery processes,” he said.
“In our views, the Confederation of Zimbabwe Industries (CZI) has a key role to play in improving business environment and predictability and clarity for economic operators.”
FDI inflows have reached US$400 million over the last few years, far less than the US$2 billion registered by other SADC countries such as Malawi and Zambia.
“The recently published UNCTAD World Investment Report 2012 makes sad reading for any Zimbabwean,” Biti said in Parliament.
“For 2011 Zimbabwe had less than US$400 million investment at a time when FDI to Southern Africa was recovering from 78% in 2010 to a more than doubling its total to US$6.8 billion.
“Nigeria, South Africa and Ghana had investment levels of more than US$3 billion. Congo, Algeria, Morocco, Mozambique and Zambia had FDI of US$2 to US$2.9 billion,” said Biti.
“Although much of Africa’s fresh investment has largely gone to hydro carbon resourced Angola and Nigeria, investments in Mozambique, Zambia, and the Democratic Republic of Congo show that investment will follow good (policies).”
Investors have largely expressed concern over the country’s economic empowerment policies which now force foreign companies to transfer control of at least 51 percent of their Zimbabwe operations to locals.
The coalition government remains divided over the policy which is being pushed by President Robert Mugabe and his Zanu PF party. The party says its aspiration is for 100 percent ownership and control of all foreign companies operating in teh country.
However, Biti said the indigenisation laws would be revised to ensure they did not apply to foreign direct investment.
“The country needs to re-strategise and redesign the current framework for luring FDI, paying particular attention to policy consistency, macro-economic stability, security of investment and building a competitive investment environment,” he said.
“The various concerns regarding some aspects of the current Indigenisation and Empowerment Regulations are receiving attention by Government.
“The objective is to rationalise and align the Zimbabwe Investment Authority Act with the Indigenisation and Empowerment Regulations, in order to address investors’ concerns and, hence, attract meaningful investment into the country without undermining the empowerment initiatives.”
Labels: EU, FDI
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COMMENT - I guess it is the EU's role to break open markets in Africa. Of course they don't live by their own principles, because there are lots of restrictions on importations into Europe, and subsidies for agricultural products, which the World Bank bans in Africa (see
what happened to Malawi when they supported their farmers).
Laws impeding foreign investment: EU
30/07/2012 00:00:00
by Business Reporter
THE
European Union (EU) has warned that Zimbabwe will continue to lag behind most of its SADC neighbours in attracting foreign direct investment (FDI) unless measures are taken to address the currently
prohibitive legal framework.
Having seen steady growth since the formation of the coalition government in 2009, the country’s economy has started to falter forcing the government to cut its 2012 budget as well as revise downwards growth projections for the year.
While presenting his mid-term fiscal review recently, Finance Minister Tendai Biti said Zimbabwe desperately needs to attract foreign direct investment.
"The first half of the year has been the most economically challenging in the last 40 months. This economy needs foreign direct investment to increase this little cake into a bigger cake."
But EU representative to Zimbabwe Aldo Dell'Ariccia told the Confederation of Zimbabwe Industries (CZI) annual congress in Nyanga last week that the country must address its prohibitive legislative environment in order to be competitive.
“The EU believes in the key role that the private sector/industry and its organisations have to play in Harare economic recovery processes,” he said.
“In our views, the Confederation of Zimbabwe Industries (CZI) has a key role to play in improving business environment and predictability and clarity for economic operators.”
FDI inflows have reached US$400 million over the last few years, far less than the US$2 billion registered by other SADC countries such as Malawi and Zambia.
“The recently published UNCTAD World Investment Report 2012 makes sad reading for any Zimbabwean,” Biti said in Parliament.
“For 2011 Zimbabwe had less than US$400 million investment at a time when FDI to Southern Africa was recovering from 78% in 2010 to a more than doubling its total to US$6.8 billion.
“Nigeria, South Africa and Ghana had investment levels of more than US$3 billion. Congo, Algeria, Morocco, Mozambique and Zambia had FDI of US$2 to US$2.9 billion,” said Biti.
“Although much of Africa’s fresh investment has largely gone to hydro carbon resourced Angola and Nigeria, investments in Mozambique, Zambia, and the Democratic Republic of Congo show that investment will follow good (policies).”
Investors have largely expressed concern over the country’s economic empowerment policies which now force foreign companies to transfer control of at least 51 percent of their Zimbabwe operations to locals.
The coalition government remains divided over the policy which is being pushed by President Robert Mugabe and his Zanu PF party. The party says its aspiration is for 100 percent ownership and control of all foreign companies operating in teh country.
However, Biti said the indigenisation laws would be revised to ensure they did not apply to foreign direct investment.
“The country needs to re-strategise and redesign the current framework for luring FDI, paying particular attention to policy consistency, macro-economic stability, security of investment and building a competitive investment environment,” he said.
“The various concerns regarding some aspects of the current Indigenisation and Empowerment Regulations are receiving attention by Government.
“The objective is to rationalise and align the Zimbabwe Investment Authority Act with the Indigenisation and Empowerment Regulations, in order to address investors’ concerns and, hence, attract meaningful investment into the country without undermining the empowerment initiatives.”
Labels: EU, FDI
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Government embarks on tax reforms
TIME PUBLISHED - Thursday, June 28, 2012, 10:05 am
GOVERNMENT has embarked on reforming the tax regime in Zambia. Secretary to the Treasury, Fredson Yamba said yesterday that one of the important components for the Government’s growth strategy was to maintain a positive investment climate for potential investors.
Mr Yamba said the Ministry of Finance, Ministry of Commerce, Trade and Industry, Zambia Revenue Authority and Zambia Development Agency started the review of the tax incentives being offered. He said this during the official opening of a workshop on review of the tax incentives regime in Zambia at Southern Sun Hotel in Lusaka.
He said the key areas for the review would include the tax policy reforms which would focus on designing a broader and more effective investment climate.
The review of the tax would help the Government to implement and communicate clearly a consistent set of policies related to foreign investments.
He said the Government had a desire to re-assess incentive policy to make it more cost-effective and allow it to benefit a number of people.
“While still committed to Foreign Direct Investment (FDI) and an incentive programme, Government has a desire to re-assess incentive policy to make it more cost-effective and allow it to benefit a broader spectrum of the Zambian people,” Mr Yamba said.
He said the Government’s desire was to design a regime that would contribute to Zambia’s wider development objectives.
Mr Yamba said the regime would incorporate the creation of employment, maximising the backward and forward linkages of new investments, and the transfer of skills and technology, especially in priority sectors while mitigating the revenue losses to the treasury.
Commerce, Trade and Industry Permanent Secretary Stephen Mwansa said there was need to diversify the economy so as to improve Zambia’s resilience and broaden the benefits of the growth to a larger section of people.
Mr Mwansa said the main objective of granting tax incentives was to make Zambia a preferred destination for investment, establish an environment for increased industrial growth, promote exports and develop the private sector.
He said tax incentives were for designated priority sectors such as mining, tourism, agriculture and energy, hence the need to broaden the spectrum.
“Zambia today faces the challenge of limited economic diversity; it relies on the mining sector which makes it remain vulnerable to external shocks.
“Diversifying the economy would contribute to improving the country’s resilience and broaden the benefits of growth to a larger proportion of Zambians,” Mr Mwansa said.
[Times of Zambia]
Labels: FDI, TAXATION
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COMMENT - I don't care where foreign mines invest their profits after they make them.
I just want them to make a lot less profit, and the state to get much more revenues. Of course, if the state builds or buys it's own mines, it can have it's own income from mining.
ActionAid asks government to end profit externalization
By Gift Chanda
Thu 21 June 2012, 13:24 CAT
ACTIONAID Zambia has urged the government to clearly define its objectives in allowing foreign firms to externalise profits.
In interview, ActionAid Zambia economic justice project officer, Nsindano Kryticous, observed that
Zambia was being robbed of the much needed funds to drive economic growth and development by allowing foreign firms to externalise profits.
He said there was need for the government to clearly define what it wanted to achieve by letting this trend to continue.
"You realise that most of Zambia's earnings, up to about 80 per cent, come from the mining sector, for example. However, what we get in terms of treasury contribution is only about four per cent. So you realise that externalisation robs the country," he said.
Kryticous intimated that the government should clearly state whether it wanted to increase investment inflows by making Zambia an attractive investment destination by allowing externalisation of profits or ensuring that the investment actually benefited Zambians.
He said if the latter was the case then the government should ensure that it finds a strategic way to make foreign companies help develop the financial sector.
"The ideal situation should be to at least allow these funds to be able to pass through the local banks so that that money should be utilised by the banking system to lend to small and medium enterprises," he said.
"As a country first of all we should come up with a strategy of what we really want to do. Which direction do we head to? Yes, financial liberalisation is good on one hand but very harmful on the other hand. It may attract more FDI Foreign Direct Investment but we must weigh the benefits and of course the costs."
He said a balance needs to be struck.
"We should have a situation where as much as it is easily for investors to externalise the funds it should also be easily for them to bring in the funds in the country but that is not the case. We have an imbalance there and you can't grow an economy in that way," said Kryticous.
Labels: ACTIONAID, FDI
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ZEC accuses government of being more interested in foreign investors
By Tilyenji Mwanza and Henry Sinyangwe
Wed 20 June 2012, 13:23 CAT
ZAMBIA Episcopal Conference secretary general Fr Cleophas Lungu yesterday accused the government of being more interested in issues concerning foreign investors at the expense of Zambians.
And some civil society and faith-based organisations say there is need to employ sustainable, ethical and responsible mining if the nation is to benefit from the mineral resources.
Speaking during the official opening of the Zambia Alternative Mining Indaba (ZAMI) in Lusaka, Fr Lungu said Zambia needed mining companies that would respect people's rights and not force mines on people and communities who do not want them.
He said the extractive industry must put people, and not money, first.
"Mining should not dehumanise people but should instead help to uplift their human dignity. To achieve this we need progressive policies and legislation," Fr Lungu said.
Fr Lungu said there was also need to strengthen the legislative and institutional environment obtaining in the country.
"The legislative and institutional environment currently obtaining in the country is weak and requires some strengthening in order to ensure greater returns from the extractive industries. The oversight role played by Parliament must also be enhanced," Fr Lungu said.
Fr Lungu said mining companies have been making huge profits while the local communities have suffered increased impoverishment due to the mining activities which have negatively affected the livelihood of the people.
"For many years now, we have had the unfortunate situation whereby the mining corporations have not helped the poor communities in areas where they are operating. Instead they have often made them worse off as is evident in the Copperbelt and North Western provinces," said Fr Lungu.
And chief Sinazongwe of the Tonga people said displaced people in mining areas must be properly compensated by ensuring that proper infrastructure is built in the areas they settled.
He said chiefs were usually side lined in the processes of awarding mining contracts and not given ample time to consent to the mining expeditions.
"Chiefs must be given ample time to go through various contracts and must be given the responsibility to advise government on mining activities in their communities from time to time," said chief Sinazongwe.
Meanwhile Evangelical Fellowship of Zambia , executive director Rev Pukuta Mwanza said he was concerned with the safety, mining operation and the management of toxic materials from the mineral processing activities as this posed a serious safety and health hazard to the people in the affected areas.
And Rev Mwanza said EFZ preferred joint investment between the foreign and local investors in the extractive industry.
Labels: FDI, MINING, NEOLIBERALISM, ZEC
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Chief Mumena's land fears
By The Post
Mon 18 June 2012, 13:25 CAT
THE fears being expressed by chief Mumena of the Kaonde people of Solwezi that land in Zambia will soon be in foreign hands going by the pace and sizes it is being given out are real. It cannot be denied that to develop, we need to give reasonable access to land for those with money to invest. If an investor needs land to build a factory or to start a farm, a plantation that will employ many people and generate revenue for the country, they need to be given that access.
But what we see today is people with influence, with a bit of money being given huge tracts of land that from the very beginning it is clear that they don't intend to fully develop and theirs is simply a speculative motive - to one day sell that land which they got for nothing for a gigantic fortune.
And it is true that good land, valuable land in this country is going to speculators at a very fast rate. Huge tracts of land have been allocated to people who are not using them for any productive purposes. And to hold that land, they are using it for game ranching. This includes both customary land and state land.
Customary land is also being turned into state land so easily and at an alarming rate. The reason for this is simply to ensure high marketability of the land for the speculators. The sale of customary land is one of the most controversial subjects in our land tenure system.
Security of tenure is one of the main problems cited against customary land. It is argued that holders of customary land risk losing their rights to it at the discretion of chiefs and other traditional authorities. This is not true. There can never be a better falsehood against customary society than this.
We say this because rights in customary land are basically of two types: of permanent and total nature and of a temporary and partial nature. Where the rights are of the first type, such as ancestral rights, a person enjoys complete security of tenure to occupy and enjoy the land to the maximum extent possible.
There is no customary rule of law, which deprives him of this land. Similarly, even corporate land, that is clan land, is for the clan as long as the clan continues to exist. Even if an individual decides to leave his place of dwelling, his land rights do not lapse. Practice in various parts of our country can bear testimony to this conclusion.
But if an individual is holding borrowed land, the position is the reverse. A borrower has no security since no specific agreement is concluded. The lender can at any time give notice of his intention to reclaim his land. And the issue of insecurity arising from borrowed land is becoming a crucial challenge.
But in truth, insecurity in customary areas is caused by the state itself. Grants of land to investors in customary areas otherwise known, in the land Act 1995, as conversion of customary to statutory tenure have been the leading cause of insecurity in these areas. During colonial rule, residents of reservations were protected from non-natives. Reserves were out of bounds to non-natives.
On the other hand, if a title deed was going to be issued, say a villager in a trust land wants to sell his land to a non-native, the orders provided that the sale should be witnessed by a magistrate in the area who must also attest to the contract.
Also, the magistrate should aver that the consideration proposed was adequate and that he was satisfied that the seller knew what he was doing. Finally, the district officer must approve the sale as well as the district commissioner.
The district commissioner was also a judicial officer in his own right. All this was preceded by a public inquiry convened to enable people with interests in the land to air their views on the proposed sale. This safeguarded the rights of not only the seller but also the people in the community.
At present, a conversion of customary land to statutory land is virtually a secret process so that people that are likely to be affected by the alienation have no opportunity to question the transaction.
All they see in the end are bulldozers, graders and hordes of people ordering them to leave as the land that belonged to them before has since changed hands. This is the most threatening form of insecurity customary land-holders face.
What is more worrying is that there is no provision in our laws for converting statutory tenure to customary tenure. If land has been converted from customary tenure to statutory tenure, it cannot be taken back to its original tenure again.
Due to constitutional requirements, it is not easy to cancel a title deed once issued. In our case, even if the title deed is cancelled, the land does not revert back to customary tenure.
We can learn something from the Kenyan experience on this score. In early 1960s, the government in Kenya decided to issue countrywide title deeds to everyone holding customary land. This is probably the only case in Africa of nationwide statutory conversion of statutory tenure.
Only a few pieces were left for common use. Also, the pastoralist Masai communities totally rejected the policy. Otherwise, the entire country was held on a statutory tenure. The result is that over 40 years later, millions of people have no land.
Most of the individuals who got the title deeds as family heads later sold them, leaving their kin on the streets. The title deeds have led to massive disposition of land rights instead of securing those rights.
There is need to protect our people from being rendered landless in the next few years. A system which protects the people and which at the same time allows economic development to take place can and must be found. We have examples of where organisations are giving limited title to land to enable those who want to use it to do so with ease.
A good example of this is the Show Society in Lusaka who have given long leases to many developers but still own that land. Why can't our traditional authorities be allowed to do what the Lusaka Show Society has done?
Our draft constitution does not adequately and reasonably address the issue of land tenure and land alienation. Zambia has not really sat down to draw its own land policy. We are simply applying various land laws hastily assembled or picked from other jurisdictions without any relevance to the situation here.
There is need also for admission of past mistakes and that some past certitudes like on titling, modernisation of tenure and on customary systems later proved ill-founded. Our land policy should be examined in its historical context, history matters. The land issue should therefore be perceived as one of the human rights and constitutional concerns of our people.
Given that land policy has in the past often severely discriminated against the poor, specific actions to empower this group would be justified to provide them with equal access to economic opportunities. The right to access land is not guaranteed in the bill of rights. In order to ensure effective rights, this must be there.
Labels: CHIEF MUMENA, CONSTITUTION, FDI, LAND RIGHTS
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