Dignity of work
By Editor
Wednesday July 09, 2008 [04:00]
OUR people and our country are not benefiting much from foreign investment. It is actually the foreign investors who are benefiting a lot from their investment in our country, and not our people. All they leave us at the end of the day is environmental degradation. We commend the 16th Plenary Assembly of the Association of Member Episcopal Conferences in Eastern Africa (AMECEA) for the communiqué which urged governments in our region to put the interest of common citizens ahead of any gains when negotiating contracts with local or foreign investors.
We urge the governments of our region to study, embrace and implement their recommendations. Truly, investments must not disadvantage the people. External investments should be welcome into the economies of our region, but these investments must not disadvantage our people.
Our people today suffer the injustices of unjust wages and poor working conditions.
Yes, foreign investments, and all other investments, are creating some jobs, some work for our people. But work is more than a way of making a living; it is a way of expressing and realising our dignity, and it is an opportunity to collaborate with God in the development of creation. Therefore, workers should participate in the workplace in a manner reflecting their responsibilities and dignity. Employers should treat workers with respect. They cannot be reduced to mere commodities. People have a right to productive work, to fair wages, and to private property and economic initiative.
AMECEA's communiqué does not come as a surprise to us. We say this because the Catholic Church has a long tradition of defending workers and supporting their rights. Actually, in the Catholic teaching, the economy exists to serve people, not the other way round.
The AMECEA communiqué also raised concern about the gap between the rich and the poor that is ever growing wider. In many parts of our country, people are working but are still not earning enough to lead a dignified life. Employers have a moral obligation, and a practical responsibility, to ensure that their workers receive a fair wage for fair work. We urge the government to investigate and implement a just wage for all employees in our country.
And when we talk about a just wage, we mean a salary that will allow workers to at least earn more than the poverty level in the area where they live; should be commensurate with other employers in similar industries; and recognises the dignity and respect that should be accorded to all workers. A just wage is one that recognises the value of the service provided by the employee; takes into account the prevailing economic conditions in which the business operates - but is not driven solely by market forces; allows employees to live above the poverty level in their area; and respects the whole person - recognises that work is the normal way to provide for oneself and one's family, but is only part of a balanced life.
By consulting a variety of sources, a reasonable wage level can be determined. This should be considered only a minimum and employers are urged to seek ways to go beyond these levels. This might include provisions for part-time work, flexible benefits, generous leave allowances, and other avenues that allow employees to cope with the heightened pace of today's life. Of course, economic conditions vary from area to area.
All good businesses have the responsibility to remain economically and financially viable. While it may not be essential that they make super profits, they must be able to generate sufficient income to defray expenses and meet other operating costs or they will become unsustainable. When decisions are made, for whatever reason, to hire employees, the employers, must be fully committed to dealing with the implications of those decisions - from economic and financial sustainability of the enterprise to fair wages for employees.
Wages cannot be based upon injustice to employees - the ends never justify the means. There is no question that increased labour cost will impact the revenue or proceeds of the business. However, acting justly with our employees strengthens our moral authority. The moment a person is hired, the employer should assume all the inherent responsibility and duties. And this is especially more so for the government and other public institutions if they are to hold other employers accountable, they must set the standard. Serious consideration needs to be given to trade-offs in budgets and in the use of funds. God is calling us to justice, are we offering excuses?
If employers object to high wages for employees, then it is up to the government to educate them regarding the principles of economic justice and challenge them to adopt these principles in their own lives.
Paying just wages is not only a requirement of justice, but will also be a powerful witness to those who are concerned with economic justice for all people.
Work is a principal way for individuals to fulfil their material needs and contribute to the larger community. Fair and equitable treatment for employees should be a requirement for all employers. While work is necessary, employers should also recognise the needs of a complete individual - for parents to spend time with children, workers to engage in leisure activities, and every person to have time to revitalise the spirit. Motivating employees through a just, equitable wage will improve morale, working conditions and economic return.
There is need to bear in mind all the time that the economy exists for the person, and not the person for the economy. All economic life should be shaped by moral principles. Economic choices and institutions must be judged by how they protect or undermine the life and dignity of the human person, support the family and serve the common good.
And a fundamental moral measure of any economy is how the poor and vulnerable are fairing. It doesn't profit anyone much to go round banding statistics of economic progress in the country when the conditions of the poor and the vulnerable are not in any meaningful way improving.
All people have a right to life and to secure the basic necessities of life - food, clothing, shelter, education, health care, safe environment, economic security and so on and so forth.
All people have the right to economic initiative, to productive work, to just wages and benefits, to descent working conditions. All people, to the extent they are able, have a corresponding duty to work, a responsibility to provide for the needs of their families and an obligation to contribute to the broader society.
In economic life, free markets have both clear advantages and limits; the government has essential responsibilities and limitations; voluntary groups have irreplaceable roles, but cannot substitute for the proper working of the market and the just policies of the state. Society has a moral obligation, including governmental action where necessary, to assure opportunity, meet basic human needs, and pursue justice in economic life. Workers, owners, managers and consumers are moral agents in economic life. By our choices, initiative, creativity and investment, we can enhance or diminish economic opportunity, community life and social justice.
The global economy has moral dimensions and human consequences. Decisions on investment, trade, aid and development should protect human life and promote human rights, especially for those most in need wherever they might live on this globe.
Governments in our region still have a daunting task of reducing the gap between the rich and the poor and ensure that there are no misplaced priorities, inequitable distribution of resources, bad governance, corruption and conflicts that put extra burden on the poor and the vulnerable.
Labels: FDI, JOBS
Read more...
Investments must not disadvantage the people, says Archbishop Ziyaye
By Mwala Kalaluka
Wednesday July 09, 2008 [04:01]
ROMAN Catholic bishops in East Africa have urged governments in the region to put the interest of common citizens ahead of any gains when negotiating contracts with local and foreign investors. Delivering a communiqué at the closure of the 16th plenary assembly of the Association of Member Episcopal Conferences in Eastern Africa (AMECEA) in Lusaka on Sunday, newly-elected AMECEA chairman Archbishop Tarcisio Ziyaye said investments must not disadvantage the people.
"We welcome external investments into the economies of our region but these investments must not disadvantage our people. Justice demands payment of just wages and good working conditions," Archbishop Ziyaye of Blantyre, Malawi said.
"Our governments in the region must demonstrate transparency and concern for the common good in their contract negotiations with both local and foreign investors.
"Archbishop Ziyaye, who was elected chairman during the one-week assembly held in Lusaka under the theme 'Reconciliation through Justice and Peace', said governments in the region still had a daunting task of reducing the growing gap between the rich and poor.
"There are several factors that lead to high poverty levels in the countries of AMECEA," he told congregants at the Cathedral of the Child Jesus. "While we acknowledge the external factors such as unfair trade pacts with Western and emerging Asian economies, we also recognise local causes of this such as misplaced priorities, inequitable distribution of resources, bad governance, corruption and conflicts and scourge of HIV and AIDS."
Archbishop Ziyaye also said the church's advocacy on constitutional and legislative issues would continue to encounter difficulties as long as some regional national assemblies did not establish Parliamentary Liaison offices.
"These offices will be a means for permanent and constant dialogue between the church and parliamentarians, and will reduce the representational gaps and let the church contribute positively on constitutional and legislative issues," he said. "In the same line, we commend efforts being made to seek for an Observer Status at the African Union. AMECEA will seek similar status within the relevant regional organizations...and ensure that decisions made do not disadvantage the poor majority."
He noted with sadness that the education of children, especially girls, still remained a great challenge in the region.
"Parents can and should do more to instil confidence and appropriate formation for the girl child at an early age," Archbishop Ziyaye said. "We urge the church institutions to prioritize the formation of leaders at all levels."
Archbishop Ziyaye also bemoaned the dismal efforts by local authorities to protect the environment from destructive elements.
On the conflicts in the region, Archbishop Ziyaye said the wars and tensions in the member countries posed a big challenge to the church's evangelisation work.
"We believe that the church should continue to be prophetic," said Archbishop Ziyaye. "Although not in AMECEA region, we are greatly concerned with the crisis in Zimbabwe. Our hearts go out to the people of Zimbabwe who are facing hard times."
Labels: DEVELOPMENT, FDI, MALAWI, TARCISIO ZIYAYE
Read more...
3 Russian firms hope to invest $2bn in mining
By Masuzyo Chakwe
Monday June 16, 2008 [04:00]
OUTGOING Russian Ambassador to Zambia Dr Anvar Azimov has disclosed that three Russian multi-billion companies will next month visit Zambia with the hope of investing capital in the mining sector. In an interview, Ambassador Azimov said if all went well, the total investment in Zambia would exceed US$2 billion, thus creating many jobs for Zambians. Ambassador Azimov said Russia was also willing to assist Zambia in strengthening its military potential.
He called for new actions to fight poverty, infectious diseases and to develop in a faster manner, to attain economic independence. He added that Zambia was politically independent and hoped she would soon become economically independent.
He said Zambia was the core of Africa and one of the most stable and peaceful states with an excellent system of good governance.
Ambassador Azimov hoped Zambia would promote further the strengthening of the African Union, Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) to contribute to the region’s economic integration.
He was however happy with the level of relations between Russia and Zambia.
Labels: FDI, RUSSIA
Read more...
Why the World Isn't Flat According to the conventional wisdom popularized by Thomas Friedman, countries can grow rich only by means of unfettered capitalism and pure free trade. In his controversial book,
Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism, Ha-Joon Chang takes aim at this orthodoxy. Combining irreverent wit with scholarly rigor, Chang shows that nations like the U.S. that achieved their present wealth by means of economic nationalism now preach an entirely different set of policies to the developing world, via the World Bank, International Monetary Fund and World Trade Organization.
Chang calls on us not only to re-evaluate the policies we promote to countries seeking to grow rich, but also to become reacquainted with our own forgotten economic history.
Ha-Joon Chang has been described by one economist as "the most exciting thinker our profession has turned out in the past fifteen years." He teaches at Cambridge University, where he received his Master's degree and doctorate. A consultant for the Wold Bank, the Asian Development Bank, the UN and other international organizations, he was awarded the Leontief Prize for Advancing the Frontiers of Economic Thought in 2005. His book Kicking Away the Ladder: Development Strategy in Historical Perspective (2002), which received the Myrdal Prize, was acclaimed by the eminent MIT economist Charles Kindleberger as "a provocative critique of mainstream economists' sermons directed to developing countries."
Labels: BAD SAMARITANS, FDI, HA-JOON CHANG, NEOLIBERALISM
Read more...
Govt warns employers flouting laws
By Maluba Jere
Friday March 07, 2008 [03:00]
LABOUR minister Ronald Mukuma has warned employers not to push the government too far by flouting labour laws in the country. Speaking when he conducted an on the spot check at Spur downtown shopping mall yesterday, Mukuma said the government would not condone bad practices being perpetrated by some employers.
“I decided to visit your company because my deputy minister as a normal practice came here and received some disturbing reports from the workers so I came to see whether there are improvements,” he said. “We don’t want a sour relationship with the government but don’t push us too far because we will react.”
Mukuma said the government was setting a higher target of economic development whose achievement would also depend on the contribution of the labour movement.
“The government is not amused with employers who flout labour laws and we expect them to cooperate without exception,” he said.
He also advised Spur management to desist from firing workers whenever it suited them, saying the normal standard was to issue a one month notice to any worker before taking such action.
He said the government was also against employing workers on a temporary basis because the trend prevented most of them from accessing facilities such as mortgages.
“You must treat your workers as partners in development, not tools. but I understand you are not following the collective agreements on issues such as overtime and others,” he said.
But Spur downtown general manager Collins Temba said it was not deliberate that people were employed on temporary basis, saying they just did not make it after their probation.“Out of 140 workers only 90 are permanent and others are on two months contracts,” he said. “Spur is here to stay and so the two-year contract was just a start, we are now adjusting according to the labour laws.”
Mukuma also toured Printeck Limited where he expressed happiness at the fact that most of the workers there were Zambian.
He said the government was concerned with industrial harmony and urged employers to embrace unions at places of work.
“Employers have a tendency of imposing decisions on workers but please make them understand why you have taken a certain stance,” he said. “The vision 2030 of becoming a middle income state will require high productivity and so if the labour market is constrained, then a lot of targets will not be met.”
And Printech managing director Hanif Ali told Mukuma that his company had employed close to a 100 workers on a permanent basis.
Labels: CHAMBISHI MINE, FDI, LABOUR, NEOLIBERALISM
Read more...
Don't leave MFEZ to Zambians, Levy tells Chinese.
By Chibaula Silwamba
Wednesday February 27, 2008 [03:00]
DON’T leave Multi Facility Economic Zones (MFEZ) to Zambians because we don’t have adequate resources to make them successful, President Mwanawasa has urged a visiting Chinese business delegation. Addressing the delegation that paid a courtesy call on him at State House on Monday, President Mwanawasa said Zambian businessmen were very keen to participate in the trade zones.
“But I want to say at the outset that we don’t want you to leave them entirely to the Zambians.
We don’t have adequate resources to make these trade zones successful. We would hope that Chinese businessmen will come and invest in these trade zones and if they can go into partnership with Zambians that will be better,” he said. “
You have thanked us for the support which we have given you on the trade zones but in my view it should be the other way round because it’s you who has supported us. This is an initiative which you gave to Zambia and it’s a true symbol of true friendship.”
He urged the Chinese to continue investing in Zambia.
“We are used to receiving people here who come to sell products from their countries to us as consumers but the difference with your delegation is that you have come to see what items you can buy from Zambia whereby you are increasing our volume of trade in our favour,” he said. “We are very grateful for the development effort which you have given to Zambia and we do hope that this will continue.”
President Mwanawasa said he was glad that already the Chambishi MFEZ had created over 3,000 jobs.
“I do hope that sooner rather than later when the trade zone is fully operational, many more people will be employed,” President Mwanawasa.
He said he was happy that China had given Zambia a grant of US$6 million (about K22 billion) and a donation of US $200,000 (about K746 million) towards addressing the effects of floods.
“Feel free to take a sample of the rural areas, you visit the rural areas to see the real Zambia, to see challenges which we have to face, the challenges of poverty because what you see here in town is nothing compared to what we face in rural areas,” said President Mwanawasa.
Labels: CHINESE, FDI, MFEZ, MWANAWASA
Read more...
Chinese property rights protected, State assures visiting minister
By Times Reporter
GOVERNMENT has assured visiting Chinese commerce vice- minister, Gao Hucheng, that the Zambian Government will protect property rights of Chinese investors. Commerce Trade and Industry Minister, Felix Mutati, said yesterday when Mr Gao called on him that the two countries needed to expand economic relations by increasing the number of Chinese companies in Zambia from 200.
He said on its part, the Zambian Government would support investing companies with conducive policies that would ensure the growth of the economic relations.
Mr Mutati said Zambia was happy that the Chinese government was constructing an economic zone in Chambishi while another one would be set up in Lusaka.
“For the economic zone in Chambishi US$250 million has already been spent in a project that will cost $900 with capacity to create over 600 jobs,” he said.
He said the Government was grateful and indebted to China for deciding to locate the first of the five trade and economic cooperation zones in Zambia at Chambishi.
He said for Lusaka, there were also plans to construct an airport hub to connect Lusaka to neighbouring countries also linking China to the region especially that Zambia was surrounded by eight countries.
Mr Mutati said the companies constructing economic zones should be able to access loans for them to succeed and encourage others.
Mr Gao said Zambia was the first country in the region to establish economic ties with China and that his country was satisfied with the expansion in cooperation.
He said Chinese companies wanted to invest in Zambia because it was stable and had a conducive economic environment although there was need for increased communication by business sectors in both countries.
He encouraged the Zambian business community to buy Chinese products because of the durability and low prices while the Chinese business community should also buy Zambia’s resources.
The visiting vice-minister said his government would help in establishing economic zones and if they succeeded, more Chinese companies would invest in Zambia.
He added that China would construct rural schools, a hospital, malaria centre and agricultural centre for Zambians to improve on their farming.
He announced that 40 million RMB ($5 million) has been given to Zambia as a grant for use for any purpose to be identified by the Government.
Earlier on arrival at the Lusaka International Airport, Mr Gao said his visit to Zambia would enable the Chinese and the Zambian governments to discuss possible areas of economic corporation particularly in the mining and agriculture sector.
He told journalists that his trip to Zambia would further strengthen the pragmatic corporation that existed between China and Zambia as well as accord the Chinese government an opportunity to study Zambia’s investment opportunities.
He stated that the visit to Zambia was an opportunity for Zambian entrepreneurs to showcase their products to the Chinese business delegation that arrived in the country on Saturday.
Mr Gao said that the Chinese government would allow Zambians to export duty free different products to China mainly minerals and agricultural products.
And in his welcoming remarks, director of trade in the ministry of Commerce Trade and Industry, Siazonga Siakalenga said Mr Gao had come at a right time when Zambia had already started benefiting from the China-Africa Corporation Facility.
Mr Gao is also expected to tour the Chambishi Economic Zone in Chambishi.
On Saturday, a 20-member Chinese delegation arrived in Zambia ahead of the minister.
Labels: CHINESE, FDI
Read more...
Chinese property rights protected, State assures visiting minister
By Times Reporter
GOVERNMENT has assured visiting Chinese commerce vice- minister, Gao Hucheng, that the Zambian Government will protect property rights of Chinese investors. Commerce Trade and Industry Minister, Felix Mutati, said yesterday when Mr Gao called on him that the two countries needed to expand economic relations by increasing the number of Chinese companies in Zambia from 200.
He said on its part, the Zambian Government would support investing companies with conducive policies that would ensure the growth of the economic relations.
Mr Mutati said Zambia was happy that the Chinese government was constructing an economic zone in Chambishi while another one would be set up in Lusaka.
“For the economic zone in Chambishi US$250 million has already been spent in a project that will cost $900 with capacity to create over 600 jobs,” he said.
He said the Government was grateful and indebted to China for deciding to locate the first of the five trade and economic cooperation zones in Zambia at Chambishi.
He said for Lusaka, there were also plans to construct an airport hub to connect Lusaka to neighbouring countries also linking China to the region especially that Zambia was surrounded by eight countries.
Mr Mutati said the companies constructing economic zones should be able to access loans for them to succeed and encourage others.
Mr Gao said Zambia was the first country in the region to establish economic ties with China and that his country was satisfied with the expansion in cooperation.
He said Chinese companies wanted to invest in Zambia because it was stable and had a conducive economic environment although there was need for increased communication by business sectors in both countries.
He encouraged the Zambian business community to buy Chinese products because of the durability and low prices while the Chinese business community should also buy Zambia’s resources.
The visiting vice-minister said his government would help in establishing economic zones and if they succeeded, more Chinese companies would invest in Zambia.
He added that China would construct rural schools, a hospital, malaria centre and agricultural centre for Zambians to improve on their farming.
He announced that 40 million RMB ($5 million) has been given to Zambia as a grant for use for any purpose to be identified by the Government.
Earlier on arrival at the Lusaka International Airport, Mr Gao said his visit to Zambia would enable the Chinese and the Zambian governments to discuss possible areas of economic corporation particularly in the mining and agriculture sector.
He told journalists that his trip to Zambia would further strengthen the pragmatic corporation that existed between China and Zambia as well as accord the Chinese government an opportunity to study Zambia’s investment opportunities.
He stated that the visit to Zambia was an opportunity for Zambian entrepreneurs to showcase their products to the Chinese business delegation that arrived in the country on Saturday.
Mr Gao said that the Chinese government would allow Zambians to export duty free different products to China mainly minerals and agricultural products.
And in his welcoming remarks, director of trade in the ministry of Commerce Trade and Industry, Siazonga Siakalenga said Mr Gao had come at a right time when Zambia had already started benefiting from the China-Africa Corporation Facility.
Mr Gao is also expected to tour the Chambishi Economic Zone in Chambishi.
On Saturday, a 20-member Chinese delegation arrived in Zambia ahead of the minister.
Labels: CHINA, ECONOMIC ZONES, FDI, FELIX MUTATI
Read more...
Idle infrastructure to be repossessed
By Times Reporter
GOVERNMENT has started repossessing all infrastructure from licence holders who have not utilised them to enable new investors to take over. The Government will implement this decision next month after giving the organisations a grace period for them to comply with the provisions of the Mines and Minerals Act.
President Mwanawasa said this yesterday in a speech read for him by his Vice-President Rupiah Banda at the official opening of the African Mining Congress at Living stone’s Zambezi Sun Hotel.
Dr Mwanawasa said it was sad that many new investors could not access the vast landscape in Zambia because most of it has been taken up by mineral rights of one form or another, only for speculative purposes, rather than investment.
“Little or no work has been done on the tenements to permit partnership with other investors. Some holders of prospecting licences have outlived the legal limit and are denying other investors opportunities on the tenement,” Dr Mwaanawasa said.
He said because Zambia was implementing a policy of ‘use and leave it”, all tenements that had not been utilised by the licence holders would be repossessed by the Government.
The decision had been taken after an audit of all tenements found that many licence holders had not complied with the Act.
The licence holders had however, been given up to March 15, 2008 to comply.
“There are more than 380 gemstone mine owners and over 80 other small scale mining licence holders with accumulated unpaid area charges in excess of K10bn contrary to the law, “ the President said.
He said Government was determined to open up the Zambian landscape to investors hence, the cancellation whether the defaulters were holders of large scale or small mining rights before the new mining cadastre system opened to the public after March 31, 2008.
On the fiscal and regulatory policy changes on new mining investment in the sector, Dr Mwanawasa said the measures would not discriminate between owners of the old privatised mines and the new investors.
He stated that although some quarters had argued that new investors should be given exemptions from the fiscal and regulatory regime requirements because they had incurred debts to realise their investment, Government would treat all equally.
He said Government was aware that investors brought money into Zambia and was mindful that some owners of the old mines were investing in new projects largely by using money generated by the old mines.
He therefore encouraged the various mining companies at the congress to hold discussions and get into partnerships in the mining sector on how to enter into partnerships.
On the gas and petroleum sector, he said Government had received several enquiries from companies registered in UK, USA, Russia, China and South Africa wanting to invest in the sector.
He said Government was ready to give these companies an opportunity to invest in the petroleum sector because it would contribute largely to economic growth and strength.
He said analyses of samples collected from North-Western, Eastern and Western provinces strongly suggested the presence of oil and gas in the areas, which demanded that investors should quickly be given opportunities to invest in the promising regions.
And for this reason, Government would repeal the 1985 petroleum (exploration and production) Act to accommodate the changes to suit the current situation.
The conference is being attended by 30 mining companies from all over the world.
And speaking earlier, Meetings International Natural Resource Enterprise (MINE LLC) Chief Executive Officer Michelle Ashby said as the commodity markets continue to surge under world wide demand, Africa plays a key role in developing the required resources.
She said MINE LLC which hosts the Annual African Mining Congress organises investor meetings for natural resources, mining and modern energy industries adding that this year, over 30 mining companies are being featured at the on going congress.
Ms Ashby said the conference provides an ideal opportunity for mining companies to interact with a very targeted and interested group of investors by providing direct access to a number of interesting projects.
Labels: FDI, INFRASTRUCTURE, MINES AND MINERALS ACT
Read more...
Libyan investors to improve agriculture, tourism sector
By Joan Chirwa
Wednesday January 30, 2008 [03:00]
LIBYAN investors are set to pump in over US $100 million in the agriculture and tourism sectors in Zambia, making it the first significant Pan-African investment in the country. The investment, which includes the establishment of a sugar plantation in Luwena in Luapula Province, a lodge at Kasaba Bay and a five-star hotel in Lusaka, is expected to be actualised before the end of the year.
During the signing of a memorandum of understanding with the Ministry of Commerce, Trade and Industry in Lusaka on Monday, Libyan Arab African Investment Company deputy managing director Ahmed Mohamed Amer said the investments were targeted at sectors that required urgent development.
“The Libyan investments aim to develop sectors that are waiting to be invested in,” Amer said. “The only investment we have put up in Zambia is the Millennium village in Lusaka, but now we have come to invest in the agriculture and tourism sectors.”
A consultant has already been engaged to carry out feasibility studies for the construction of a lodge at Kasaba Bay and a five star hotel in Lusaka.
The Libyan Arab Investment Company has given the Ministry of Tourism about US $470,000 (approximately K1.8 billion) to come up with a tourism plan before the construction of the lodge could begin.
The investment group has had discussions with Chainama Hotel in Lusaka which has finally given them 9.5 hectares of land to construct a five-star hotel, as one of the major establishments.
The Ministry of Agriculture and Co-operatives has also allocated land for the sugar estate and refinery in Luwena, a development that is likely to create employment within the community once it materialises.
And commerce minister Felix Mutati said Zambia’s co-operation with Libya was slowly transforming from a political to an economic one.
“This investment represents what Africa can do to enhance itself,” Mutati said. “We are strengthening the co-operation between Libya and Zambia and it is this co-operation which is now culminating into investment flows from Libya into Zambia.”
Labels: FDI, LIBYA
Read more...
Your money will be safe, Levy assures Indian investors
By Noel Sichalwe
Tuesday January 29, 2008 [03:00]
PRESIDENT Levy Mwanawasa yesterday assured Indian investors that their money would be safe if they invested in Zambia. And India’s High Commissioner to Zambia, River Wallang, said the Ministry of Finance’s request to work on the Itezhi Tezhi Hydro Power project was receiving priority consideration of the Indian government.
Receiving a delegation of Asian business people at State House, President Mwanawasa said India and Zambia enjoyed cordial relations for a long time at both bilateral and multilateral levels.
“I say this as a way of assuring you that in Zambia you can feel totally at home and you are safe,” President Mwanawasa said. “Already, this country hosts some major Indian investments.
An example of this is the largest mining company in this country, Konkola Copper Mines, which is controlled by Vedanta. I, therefore, encourage you to bring in your investment without any fears. As you will learn, there is a law in this country which makes it very hard for the state to expropriate people’s investment.
Expropriation in Zambia, if any, requires the approval of Parliament and even then, it may only be done with full compensation. You can, therefore, rest be assured that in Zambia, your investments are safe.”
President Mwanawasa said Zambia admired the determination and resourcefulness of Indian and its people which had suddenly catapulted them into the present major world economic powers.
He said the reason for India’s economic growth was the unshackling of the entrepreneurial spirit of its people. “We are doing the same in Zambia.
So Zambian entrepreneurs together with their foreign counterparts like yourselves can exploit the vast resources of this country and create wealth and jobs for the country,” he said.
President Mwanawasa said in 1991 Zambia had undertaken major economic reforms and that the external debt which a few years ago was a major problem has since been wiped out to insignificant levels.
He said the government has since moved to the next stage of reforms which focused on simplifying the process of starting and running businesses and that it was paying off.
“I believe that Zambia is now at a step of making a big leap forward in her economy and I invite private sector participants from all corners of the globe to make their profits here and push our economy forward,” he said.
“I am therefore, happy that you all responded to our invitation to come to Zambia and look at the opportunities available.”
President Mwanawasa also thanked the Japanese government for the co-operation received and the investment flow in the country from Asia in the spirit of South to South co-operation.
President Mwanawasa was happy that Zambia was taking practical steps to realise the goals of TICAD and that he had made it a habit to invite investors to Zambia whenever he had a foreign trip.
Speaking at the same function, High Commissioner Wallang said the Indian businessmen’s visit was a demonstration of a big commitment to deliver and allow more foreign direct investment in Zambia to improve the economy.
He said he was much involved in the triangle project in strengthening the relationship between the two countries.
High Commissioner Wallang said he was happy to see the response materialising from the Indian businessmen who had decided to visit Zambia to explore the investment possibilities.
He said Zambia should expect more from India not only because of India’s diverse economy but also the strong relationship between the two countries.
“We have high expectations from this group and through their efforts to spread the word around India that Zambia is a destination for investment as well as an attractive business partner,” he said.
High Commissioner Wallang also said the request by the Ministry of Finance for the Itezhi Tezhi Hydro Power project was receiving priority consideration of his government
Japanese Ambassador Hideto Mitamura said Japan was looking at the Japan-Africa Summit to find a way of improving the African economy.
He said he was proud that the Japanese government through JAICA had made contributions to the triangle of hope.
Zambia Development Agency ((ZDA) chief executive Glyne Michelo said the visit by the Indian business people was a beacon in the triangle of hope. He said this was a good gesture as the country was trying to revive the economy through increased investment.
Group spokesperson Dr J.S Rajakumar was optimistic that their investment would contribute to the growth of the economy. He was happy that ZDA had been helpful in providing useful information about investment opportunities in Zambia.
Dr Rajakumar said he was scheduled to sign a memorandum of understanding with government for the construction of a modern hospital in Lusaka at the cost of about US $20 million.
Labels: FDI, INDIA, MWANAWASA
Read more...
COMMENT - One definition of insanity, is doing the same thing over and over again, and expecting a different result every time. By this definition, the very concept of neoliberalism is insane. More 'foreign investment' means more of the same. I hope Mark O'Donnell finally admits that it was more than timely to raise taxes on the mines.
O'Donnell calls for more investment
By Kabanda Chulu
Wednesday January 16, 2008 [03:00]
Union Gold Equity chairman Mark O’Donnell yesterday said there was need for more investments in Zambia to increase and sustain economic indicators recorded last year. And O’Donnell has urged finance minister Ng’andu Magande, during the 2008 budget, to find ways of reducing the cost of doing business in order to boost the economy. O’Donnell observed that most of the growth experienced in 2007 was driven by new investment, in particular foreign investments in the country.
“While there is much negative talk about foreign investment, the reality is very simple, the more foreign investment we get, the more growth we will experience and hence the better the lives of the people will become as more jobs are created,” O’Donnell said.
“And the current macroeconomic indicators are good and perhaps they can even be better but we need more investments to increase and sustain what has been achieved so far.”
He explained that two decades ago, China was a country experiencing tremendous poverty, but today was growing at more than 10 per cent per year and looks set to continue this rate of growth in the coming years.
“In the process, hundreds of millions of Chinese have been able to find jobs and create better lives for themselves and their families in the new economy.
This has all been made possible by foreign investment that brought in new capital, new skills and new technology. Rather than debate endlessly about the merits of foreign investment, the Chinese have made the most of it for their own benefit and this is something we should consider emulating in Zambia,” O’Donnell said.
And O’Donnell said 2008 looks to be a promising year for the economy and urged Magande to reduce taxes as a means of boosting the economy.
“The longer Magande takes to make these (tax) concessions, the longer it is going to take for meaningful job creation to take place. With formal sector employment at a little over 500,000, the numbers tell us that there are millions of people looking for jobs.
This demand for jobs surely has to motivate the minister into making the tax concessions the industry needs for further economic expansion to take place,” said O’Donnell.
Labels: FDI, NEOLIBERALISM
Read more...
Russians seek to enter Zambian mining sector
By Chibaula Silwamba
Friday December 28, 2007 [03:00]
RUSSIAN Ambassador to Zambia Dr Anvar Azimov has disclosed that three Russian companies want to invest a minimum of US$3 billion (about K12 trillion) in the Zambian mining sector. And Ambassador Azimov urged the Zambian government to take advantage of “this golden chance of huge investment”. US$3 billion is equivalent to Zambia’s annual national budget, which was about K12 trillion this year.
A fortnight ago, commerce, trade and industry minister Felix Mutati said Zambia anticipated investment to increase from US $1.4 billion to over US$3 billion by the end of 2008.
Announcing the intention of the Russian companies to invest in Zambia, Ambassador Azimov said the three companies would invest a minimum of US$1 billion (about K4 trillion) each with possibilities of increasing the investments.
“This year, 30 potential Russian investors visited Zambia and there is one good concrete result; three Russian multi-billion investment companies namely RusInvest partner (Renova Groupe), ECN Groupe and Aurora Capital expressed their desire to invest in the mining sector of Zambia, all together US$3 billion,” said Ambassador Azimov in an interview on Wednesday at the embassy in Lusaka. “Of course the priority is mining prospecting. The heads of these three investment companies met Zambian government officials, private business community and their geologists went to Copperbelt Province to study the situation of copper there. But their intention is first to buy the licence for prospecting and secondly set up their activities. They want to make geological survey then to start the process of building plants, electricity power stations, railway line, and houses for the workers and smelters.”
He said the companies’ intentions were to build the mines from geological survey up to processing copper.
“I don’t think that any other company of the world would propose such big investment in Zambia,” Ambassador Azimov. “We understand that now there are no vacant licences for mines though now there is a process of reconsideration. The appeal to the Zambian government for assistance is that they shouldn’t miss this golden chance that if there are possibilities for these three investing groups they will bring huge investments, as I mentioned, over US$3 billion.
“But the problem is that the Ministry of Mines told us that everything is taken, there are no free concessions with exception of Luapula Province.”
He said if there were no other opportunities on the Copperbelt and other provinces other than Luapula Province, then the Russian companies would do geological surveys in Luapula and start their mining activities by constructing plants and smelters.
“But we need the help of the Zambian government because this is huge amount of money,” Ambassador Azimov appealed.
He said the three companies were interested in having joint ventures with local partners though on condition that they retain 70 to 80 per cent shares.
“They will bring Russian capital but they are ready to cooperate with Zambian businesses,” he said.
Ambassador Azimov said the heads of the three companies were happy with the discussion they had with the Zambia Consolidated Copper Mines Investments Holdings (ZCCM IH) and private sector representatives.
“For example, there was a proposal to construct a smelter in Lumwana for US$400 million but these are big companies and they are not interested in investing US$300 million or US$400 million. Their intention is more serious,” Ambassador Azimov said. “By the way, this Renova Groupe invested US$2 billion in South Africa in the diamond sector and the same group is ready to invest US$1 billion but they are even ready to invest US$2 billion in the Zambian mining sector.”
He said the three companies want to construct new modern mines with all infrastructure, including an electricity station, houses for workers, a railway line and roads.
“They are interested in huge projects, not small ones,” he said. “It will be a great break through in economic development of Zambia and our relations. They will be employing many people.”
He revealed that the time the delegation came some mining companies wanted to sell their mines to the Russian companies.
“They met some owners of mines who where ready to sell their mines for amounts from US$300 million to US$700 million but the approach of our companies is to have modern structures – to construct from zero to everything,” he said.
“Each of these companies, if they got the opportunity to invest in the mining sector, they are ready to spend US$10 million for charity goals from every US$1 billion. For example, if these three companies will have the opportunity to invest US$1 billion each in Zambia, it means that US$30 million will go for charity – children, health sector, sport activities, etc.”
He said he had an agreement with the three companies that when they invest in Zambia they should sponsor football.
“It is the practice of Russian businesses if they invest money in any particular country a certain amount of money goes to charity,” Ambassador Azimov said.
He urged the Zambian government to cancel some licences of companies that had not started geological surveys to give chance to huge investment from Russia.
“The Zambian economy will benefit from these investments if the Russian companies are given an opportunity to invest here,” said Ambassador Azimov. “I hope the Zambian government will use this chance.”
Labels: FDI, MINING, RUSSIA
Read more...
Sichinga urges minimum re-investment on profits
By Chibaula Silwamba
Friday December 21, 2007 [03:00]
Business consultant Robert Sichinga has said there must be a minimum percentage of foreign investors’ profits that must be re-invested in the Zambian economy to yield more profits. Commenting on government’s incentive for foreign investors to have full and unrestricted repatriation of 100 per cent of thier profits, Sichinga said although he was not against 100 per cent repatriation of profits, the foreign investors must re-invest a certain percentage in the Zambian economy.
“I am not against investors repatriating 100 per cent of their profits so long this is backed by law. I would have thought that they would have used Zambia Development Agency Act of 2006 to give effect on that,” he said.
“It’s necessary that mechanisms are put in place to make sure that 100 per cent is not a reduction in capital that has been invested. There must be a minimum threshold for which the investors need to keep within for it to start yielding its profits.”
He also said there must be room for investors to plough back into the economy because the country needed long term investments.
“We need to have long term benefits of that investment,” Sichinga said. “In my opinion, 100 per cent repatriation of net profit will not be bad if there is local participation.”
Sichinga said externalisation of money earned from foreign exchange should be stopped.
“If they (foreign investors) are taking the money, the earnings of the forex proceeds and keep them outside the country then that is definitely wrong because it will not create the profitability and employment and investment that we require, that has to be stopped right away,” he said.
He said the Citizens Economic Empowerment (CEE) would empower Zambians to participate in the improvement of the economy.
“We need to implement the Citizens Economic Empowerment Act of 2006 as quickly as possible so that part of that amount is given to Zambians through the stock exchange,” he said. “So that there is local ownership, not just something that is going to stay for a short while but there must be a good percentage to be held by Zambians.”
Last week, University of Zambia head of Development Studies department Chrispin Matenga said there was need to enact a law that would compel foreign investors to keep at least 50 per cent of their profits in the Zambian economy for a stipulated period.
Labels: CEE, FDI, MINING CONTRACTS, ROBERT SICHINGA
Read more...
Expert advises Zambians to invest in housing industry
By Chibaula Silwamba
Thursday December 13, 2007 [03:04]
A LUSAKA financial expert has advised Zambians to invest in the housing industry if they want to have highest returns on their investments. Commenting on the booming housing and construction industry – which has led to frequent shortage of cement - in the country, Miles Sampa who is also Finance Bank international banking director, said investment in housing had a profit return of between 40 to 45 per cent in Zambia.
“My calculations indicate that the return on housing market in Zambia at the moment is giving around 40 to 45 per cent. If you invest your money in a house now your return is about 45 per cent,” he said. [What does that mean??? - MrK]
“If I had to advise an investor local or international what product to invest in, in Zambia, at the moment that has the highest return for their money I would say invest in the housing industry. You are guaranteed of a return of about 45 percent.”
Sampa said the housing market had been a winner in the economy in Zambia in 2007.
“At the moment the investment in the bonds and treasury bills pay on average 12 per cent and interbank bank is 10 per cent but a winner in the economy in 2007 has been the mortgage market or housing industry,” Sampa said.
“The investment that is highly paying in Zambia now is housing and Zambia runs among the highest mortgage industry not only in Africa but in the world as well.”
Sampa said in the US and UK prices for houses had dropped and that was what had partly weakened the US dollar.
“Houses that were worth US $ 100, 000 now are worth about US $ 60, 000,” observed Sampa. “But in Zambia, it’s the opposite. A house that was worth K 50 million last year, today the same house is worth K120 million so the prices keep appreciating.”
Labels: FDI, HOUSING, INVESTMENT
Read more...
Nkomesha unworried about being labelled stubborn over land
By Lambwe Kachali in Chongwe
Monday November 12, 2007 [03:00]
CHIEFTAINESS Nkomesha of the Soli people in Chongwe district has said it is very unfortunate that the government views her as the most stubborn chief in Lusaka Province over land issues. Meanwhile, Meanwood Housing Project executive chairman Robinson Zulu has said that lack of accommodation in Lusaka has become a source of great concern.
In an interview after she toured Meanwood and Ndeke housing projects on Friday, chieftainess Nkomesha confirmed that most government officials had told her that she was stubborn because she did not want her land to be distributed anyhow to foreign investors.
She said she always put the interest of the local people above others.
“The government and most people, especially foreigners are telling me that I am a very difficult chief and that I am stubborn because I don’t want to sell land to foreigners. Yes, I am, because it pains me when I see people being displaced from their original land just because of the love for money. I need to protect my people from unnecessary displacements,” she said.
And chieftainess Nkomesha said the government should concentrate on empowering local people rather than foreigners if poverty had to be tackled effectively in Zambia.
She said it would be difficult to address issues of poverty and displacements in the country if the government concentrated on empowering foreign investment.
“If the focus is on foreign investment as a priority, then my appeal to government is that local investors must be encouraged at all cost because Zambia is their country. This is the country where they can be proud of and invest freely and they need enough support from government,” chieftainess Nkomesha said.
She expressed happiness at the quality of houses under the Meanwood Housing Project.
She said Chongwe District Council would greatly benefit from the project.
“Our council has no capacity of raising revenue for its operations, but with these structures coming up, I am hopeful that they will be able to raise enough money through housing rates to help its operations,” chieftainess Nkomesha said. “But as the council does that, they also need to provide the required services. This area is not in the city, therefore Chongwe council must be in full control to collect the revenue.”
Chieftainess Nkomesha appealed to local investors to put the interest of the ordinary Zambians first.
“When carrying out such projects, you should always put yourselves in the poor man’s shoes. You need to ensure that the prices are much lower and affordable to meet a poor man’s pocket because shelter is very important and everybody needs it,” said chieftainess Nkomesha.
And Zulu said the project would cater for Zambians with different income levels.
“These plots were sold at K3.5 million each because we wanted to cater for everybody. But we have been overwhelmed by the quality of houses being built. We never felt that the quality of houses would be so high. Initially, most people doubted but now they have realised that we meant well and we want to take on more housing developments. We feel shelter is one of the most important thing in someone’s life,” said Zulu.
Labels: CHIEFS, CHONGWE, FDI, LAND
Read more...
Chinese labourers
By Editor
Monday October 29, 2007 [03:00]
It is said that if one is too heavily indebted to another, one will lose his or her own independence. This is also said of a man who chooses to borrow another man’s legs because he will go where the owner of the legs directs.
This scenario is likely to be very applicable in Zambia’s relationship with China, especially when it comes to the latter’s investment in our country. Many of our citizens who are genuinely concerned about Zambia’s co-operation with China, not Michael Sata who wants to cash in on this subject, have raised very valid concerns which the government needs to look at seriously.
Only last week, commerce minister Felix Mutati said he was worried about the influx of Chinese labourers in Zambia. And on Saturday, we saw and heard Mutati on television saying Zambia as a country should show appreciation for the great help it has received from China for many decades.
It is true that Zambia needs economic allies like China if it has to make meaningful economic developments. But we see a great danger in this approach. It is clear to us that our government is over-glorifying Zambia’s economic friendship with China. Suddenly, there is so much importance being attached to China and its people, even at the expense of the Zambian people.
No doubt, there should be some mutual interdependence in Zambia’s relationship with China in the same manner hands that wash each other do. There is mutual interdependence in the act of handwashing, just like people depend on each other.
However, looking at the way our government is taking relations with China, it is clear that we have surrendered our rights and control in terms of how China is going about its investment in Zambia. While it is appreciated that China is doing a lot to improve or develop Zambia’s economy, it is not to be accepted that investors from China will come here and operate as they please.
It was interesting to hear Mutati complain about the influx of the Chinese labourers in Zambia on the one hand, and urge Zambians to show appreciation for China’s help on the other. We wonder in which way Zambia or Zambians have to show appreciation for China’s help. Is it by ignoring the Chinese labourers flooding our streets? Or is it by tolerating those Chinese investors who are flouting Zambia’s labour laws.
If the government is crying about the influx of Chinese labourers in Zambia, who is going to stop this anomaly? Like Nevers Mumba and others have rightly observed, we cannot blame China for the influx of Chinese labourers in Zambia, we cannot blame China for some of their investors who are not respecting our labour laws, we cannot blame China for those Chinese investors exploiting our people.
All these things are happening because our government has tolerated them. It is said that when one is unhappy, the cause of his unhappiness is within oneself. We remember how some Chinese investors in Sinazeze last year humiliated the then Southern Province minister Alice Simango when she visited the mine where some Chinese investors are operating to physically check how the Zambian workers there were exposed to inhuman conditions as well as hazardous working conditions. Simango was denied access to the premises. Instead of applying the law against these cheeky investors, Simango just broke into tears, lamenting the bad attitude of these Chinese investors.
Today, nothing has improved in this mine and our people are continually exposed to harsh working conditions. It is true that poverty transforms a free man into a slave. When a man becomes penniless, he loses the freedom and options that he had before. Yes, Zambia may today be poorer but we are not expected to lose our freedom and options.
How can we continue to complain about the high unemployment levels when we are surrendering everything to the Chinese and other foreigners?
While it is true that we need Chinese expertise in certain fields, we do not expect a horde of Chinese labourers in Zambia. Do we really require a multitude of Chinese or Taiwanese to come to Zambia to push wheelbarrows? Do we need the Chinese to mix cement with sand when most of our youths are jobless? Do we need Chinese to grow vegetables in Zambia for Zambians? Do we need the Chinese to cook and sell nshima at City Market? Are we being serious as a country?
Enough has been said about this investment from our friends in China. What we require now is pragmatic action from our government. We expect to see the Minister of Home Affairs and his officials in the ministry to play their role effectively just like the Minister of Labour and other related ministries should do.
Labels: CHINESE, EDITORIAL, FDI
Read more...
Zambia must use the law to check Chinese - Nevers
By Speedwell Mupuchi, Maluba Kaindu-Jere, Mutale Kapekele and M
Monday October 29, 2007 [03:00]
ZAMBIA must use the power of domestic legislation, effective negotiation and diplomacy to get its slice of the international cake, former Republican vice-president Pastor Nevers Mumba has said. And United Liberal Party president Sakwiba Sikota has said it is unfortunate that there is an influx of Chinese labourers in Zambia. Commenting on the Zambia-China relations, Pastor Mumba yesterday said Zambians should be street-wise and put in place guidelines and regulations that would forever protect the vulnerable citizens.
“The issue of China and Zambia can be likened to a sloppy Zambian stadium. The stadium slopes towards our goal post. The visiting team (China) just has to roll the ball into our goal post. It is easy for them and it is working for them. It is not in their interest to spend money to level the playing field. We have to level the playing field,” he said.
Pastor Mumba said that he discovered while he was in government that Zambians were failing to police own regulations.
“One of the reasons for such failure is corruption. Those ministries and departments responsible for issuing work permits, inspecting safety equipment and procedures are usually compromised by these investors who have lots of money,” he said.
Pastor Mumba said in a global world of international commerce, Zambia must use the power of domestic legislation, effective negotiation and diplomacy to get its slice of the international cake. He said he did not think in choosing Taiwan above China, one had to hate one to love the other.
“Zambia, like any other nation of the world must to a larger extent remain non-aligned. America deals with both Taiwan and China. America which promotes democracy and is opposed to dictatorships has gone to bed in broad daylight with nations like, Saudi Arabia and Musharaf’s Pakistan! This might appear immoral, but for America, an ally is the one who is most relevant to the battle they are fighting,” Pastor Mumba said.
He said it was not China’s responsibility to put in place guidelines and regulations to protect the vulnerable citizens.
“China, like any other nation of the world, is hungry for our resources and will take advantage of any loophole created by our carelessness. We are the only ones who can ensure that investors pay Zambians well,” Pastor Mumba said. “We are the only ones that can ensure that safety regulations are followed. We are the only ones who can decide the conditions to sell any national asset to a foreigner or foreign firm.”
Pastor Mumba said China could not be ignored. He said America today did more business with China than any other nation of the world and yet they were opposed to China politically.
“All that America has done is to create strong controls on how foreign investment will be handled. Chinese investors cannot oppress an American in broad daylight, because the government will withdraw their investment license and possibly be deported,” he said.
Pastor Mumba called for removal of inequalities in the nation that seemed to favour foreigners above locals without jeopardising Zambia’s ability to continue attracting foreign investment.
“Today, it appears to be easier for a foreigner to get a job in Zambia than it is for a Zambian. This cannot be China’s fault. Their goal, if they had a way, is to make maximum profit with minimum input. This can mean bringing in their own labourers and paying Zambians poorly so that they maximise on the profits they externalise back to China.”
Pastor Mumba said the issue of Chinese labour being brought into Zambia deserves closer scrutiny.
“When Zambia’s unemployment rates are growing higher, it is only fair to ask, ‘why should Chinese labour be brought in when we have thousands of our people who are able-bodied and ready to be trained and work for a life-sustaining wage?’ That’s a fair question that deserves to be asked,” Pastor Mumba said.
He said it fell upon the Ministry of Labour and Social Services to justify why Chinese cheap labour was needed in Zambia.
And Sakwiba Sikota expressed surprise that commerce minister Felix Mutati was complaining about the influx of the Chinese when government was the one that issued permits. He also said it was the government’s responsibility to ensure Zambia did not have unnecessary labour.
“Instead of complaining about the influx of the Chinese, Mutati should have told us what the government will do to solve this problem,” Sikota said. “Zambians have a lot of skills and there is no need of giving jobs to Chinese which can be handled by Zambians. The next time the government comments, we expect them to tell the nation how they would have solved this problem.”
Last week, Patriotic Front (PF) president Michael Sata during a Human Rights forum at Harvard University in the United States where he was invited to make a presentation on human rights, charged that crooked Chinese had invaded Zambia.
However, Mutati last Thursday called for the enforcement of labour laws to address the problem of the influx of Chinese labourers.
And Sikota said that Zambia should have good relations with all governments.
“Our policy is to cultivate and have good relations with all governments because doing so can ensure good investments to benefit the Zambian people. We want investors who will give good positions to Zambians and not just exploit them,” said Sikota.
Labels: CHINESE, FDI, NEVERS MUMBA, SAKWIBA SIKOTA
Read more...
Influx of Chinese labourers worries Mutati
By Chibaula Silwamba
Saturday October 27, 2007 [04:00]
COMMERCE, trade and industry minister Felix Mutati has called for enforcement of labour laws to address the problem of influx of Chinese labourers in the country.
In an interview in Lusaka on Thursday, Mutati admitted that there had been concerns about the influx of Chinese labourers in the country.
“That concern has been expressed from many quarters about the employment and bringing in of labour, etc. We have labour laws in this country which are very specific and clear,” responded Mutati when asked about Chinese labourers coming to Zambia. “But the challenge for us is basically enforcement of the law. So we need to enhance our enforcement efforts. That is all it requires.”
Mutati observed that there was a perspective that was developing that Africa was surrendering itself to the invasion by China, particularly in the area of trade and that the continent must re-look its relationship with China.
“Now if you look at the scale of trade globally you will see that the trade between China and Africa is probably less than five per cent compared to the trade between the Western world and China. And one of China’s biggest trading partners is the US. So from an African perspective what we are saying is that given the volume of trade and investment between the West and China which obviously has been sustainable, we ask a question: If it’s good for them, why should it be bad for us?” Mutati wondered.
“They are the ones that are doing big business with China. Now they are saying it’s bad for Africa. That is a contradiction, isn’t it? Specific example in Zambia, there is the expansion programme of Chilanga Cement now called Lafarge which is owned by Lafarge of France. Now when they were carrying out an assessment to offer the contract for the expansion programme, I think the expansion is about US$150 million there about, they searched around the world for best delivery, cost and technology, and sitting in Paris they offered it to a Chinese company. We did not pick the Chinese contractor, they made their own assessments and they saw the merits in awarding that particular contract to Chinese.”
He said another example was at Konkola Copper Mine (KCM) where NFC of China was sinking a shaft.
“Again KCM is owned by a company listed on the London Stock Exchange,” he said. “So all we are saying is that our colleagues are making decisions to trade and invest in China and vice verse and Africa is saying they shouldn’t be denied the similar opportunity.
We remain alive to the fact that trade with China obviously like any other country in the world may have its own difficulties but these are the challenges that individual countries have to address.”
Labels: CHINESE, FDI
Read more...
Zambia has fallen prey to unscrupulous Chinese investors - Sata
By Brighton Phiri
Thursday October 25, 2007 [12:55]
ZAMBIA has fallen prey to unscrupulous Chinese investors, Opposition Patriotic Front (PF) president Michael Sata has charged. In his presentation to the United States of America (USA) based Harvard University Committee on Human Rights Studies Events Series on Wednesday, Sata said Zambia had been invaded by rogue Chinese investors.
"Zambia has also found it difficult to attract genuine investors and has become the prey of the rogue Chinese investors that have no regard for the welfare of those that are unfortunate enough to work for them, let alone the countries that have allowed them to exploit their natural resources and people," Sata said.
He said Chinese investments such as large scale-mining and construction firms had created industrial disharmony due to poor working conditions, which did not comply with Zambia's labour laws, environmental regulations and the occupational health and safety standards.
"They also pay slave wages. The Chinese investments have also created only a limited number of skilled and unskilled jobs for Zambians, because most technical and managerial positions, as well as a significant number of unskilled jobs are reserved for, and held by the Chinese workers, who have come along with the investment," he said. "The situation is worsened by disparities in wages paid to the Chinese and Zambian workers doing the same jobs, with the Chinese being paid substantially more."
Sata said due to the favorable treatment given to the Chinese by the immigration service, there were currently more than 80,000 Chinese nationals in Zambia.
"Government also ignores very serious reports of abuse of Zambian workers by their Chinese superiors. Failure to observe the occupational health standards at the Chinese government owned explosives factory even resulted in the death of 50 Zambian casual workers, in an explosion that destroyed the entire plant, but in which not a single Chinese life was lost," said Sata referring to the BILGRIMM Explosives accident in 2005. "Many questions surrounding the death of the 50 Zambians workers at the Chinese explosives factory to this day remain unanswered."
He said Zambia's failure to curb the violation of industrial and labor laws could be attributed to the overbearing influence of the Chinese government on its Zambian counterpart, through provision of generous gifts to the ruling Movement for Multi-Party Democracy (MMD) and the powers that be.
He said the Chinese private investment had also brought into Zambia unfair competition.
Sata said the Chinese traders sold cheap low quality products from China ranging from clothes to electronic household goods, which did not meet the local standards.
"The garments, for example, wear out after being washed once, but they cost substantially less, and uninformed poor people, buy such garments at the expense of stronger locally made garments," he said.
"Such trading activities are killing the local industry and taking away livelihoods from local people, such as tailors and traders selling better quality garments, not to mention the textile firms, most of which have collapsed not only in Zambia, but in Southern African region as a whole."
He said the entry of Chinese traders into the micro enterprise sector had worsened competition in an already over-crowded informal economy, which supported the bulk of the labour force.
Sata said the private investors from China enjoyed an unfair advantage over their competitors in Zambia because they had access to generous Chinese government loans and grants provided only to Chinese nationals and enterprises through the Bank of China, which had opened branches in Lusaka and the Copperbelt.
Sata said the increased clout of the Chinese in Africa had a bearing on consolidation of democracy and a culture of respect for human rights, because China did not subscribe to democracy and was inconsistent in upholding human rights at home.
"We should also bear in mind that poverty in Africa is pervasive, and has hardly spared any one, including the political leaders. The Chinese are aware of this, and are preying on the poverty of many African political leaders," he said.
He asked Africans to engage China in a more intelligent manner than they were currently doing.
Sata said the development of Africa and its people could not be achieved on the basis of designs and strategies of other people.
"The Africans ought to take responsibility and protect their heritage and the future of those yet to come. It is, therefore, critical for African countries to review their engagement with China," Sata said.
"The foreign policies of African countries should be based on the universal values of democracy, good governance, protection and respect for human rights. A human rights approach to policy formulation in Africa would guarantee human dignity and peace.
"It is for this reason that the Patriotic Front in Zambia finds it more prudent to cultivate relations with Taiwan, a democracy and a more advanced country than China, which can provide high quality investment and more equitable trading opportunities."
Labels: CHINESE, FDI, SATA
Read more...
