(THE MAST ONLINE) We are in a crisis of joblessness
By The Mast
on July 31, 2018
“Unemployment has reached crisis proportions and I can assure you that a revolution is on the horizon,” says Saviour Chishimba. He is right. Last week the Zambia Police Service received 57,601 applications in the recent recruitment exercise for 1,000 constable positions – Lusaka received 10,000 applications, Copperbelt had 9,000, Southern had 6,000, North-Western Province, 5,278, Western Province had 5,113, Muchinga Province had 5,020, Eastern Province had 4,800, Northern Province had 4,605, and Luapula Province had 4,006 while Central Province had 3,779.
“How can a country with stable leadership, with a stable economy as they claim, have more than 50,000 people applying for 1,000 job positions?” asks Chishimba.
One of the primary transmission channels of the economic crisis Zambians are today enduring is through the labour market. Unemployment is increasing sharply, and unemployment lasting much longer. And those workers who are keeping their jobs are taking home smaller and smaller cash, as companies are trying to reduce labour and other costs to survive. Some are increasingly accumulating wage arrears. And youths leaving school, college or university are struggling to secure their first job.
Families are forced to make significant adjustments in expenses. Food expenditures are declining. The necessary medicines can’t be bought. Many families are making extraordinary effort to keep children in school. It’s increasingly becoming very difficult for many parents to pay school fees. Some are forced to change schools for their children because of fees. Many children in the compounds can’t go to school because of fees.
Confronted by an income shock, many families are taking steps to reduce expenditures, but some of those measures – food expenditures, health care utilisation – could have a serious impact on nutrition and health in the long run. But our politicians in government seem to be in denial. And as such no measures are being taken to protect human welfare and long-term human capital.
We are also not seeing any additional measures being undertaken to ensure access to health and education services, especially for the poorest in the population.
Unemployment is rising sharply. More and more men are losing jobs as the male-dominated construction sector is starting to feel the effects of reducing government expenditure on infrastructure projects. Youth unemployment is reaching record highs as first time jobs are increasingly becoming hard to find. Long-term unemployment is also increasing as re-entry into the labour market is becoming exceedingly difficult for those who have lost jobs.
Workers are being forced by job losses to take reduced pay. An increasing number of workers are forced to take less pay in order to stay in employment.
Many companies are struggling to survive and are forced to reduce real wages and are accumulating huge wage arrears.
A major risk is that much of this unemployment is becoming structural in nature as many of the unemployed drift into long-term joblessness or drop out of the labour force. This unwelcome phenomenon may take many years, if at all, to bring joblessness back down. This persistence in unemployment arises because the longterm unemployed become less attractive hires for employers as a result of declining human capital and diminished job-search activity. Moreover, persistently high unemployment brings other major social and economic costs in its wake, from poorer health, lower living standards and less life satisfaction for the unemployed and their families to increased crime and lower growth potential for society.
Politics dictates that the politicians running government must intervene energetically to reduce the suffering of our people.
We believe the nature of employment is fundamentally changing and cannot be reversed. But workers, businesses and the government can prepare for it if they work together.
Labels: JOBS, NEOLIBERALISM, UNEMPLOYMENT
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(THE SOUTHAFRICAN SA) ANC promises six million jobs in election manifesto
By The South African.com
on 13 January, 2014 5:13 pm
Opposition parties have expressed doubt that the South African government will be able to fulfil its promises to create six million jobs, fight corruption and improve education, as detailed in the ANC’s election manifesto unveiled by Jacob Zuma on the weekend
President Jacob Zuma said the South African government will expand its public employment programme with an aim of creating six million job opportunities to all South Africans.
Presenting the African National Congress’s January Statement at the Mbombela Stadium, Mpumalanga, on Saturday, Zuma said with youth unemployment reaching alarming levels, the majority of the mooted jobs would be reserved for young people.
The statement was anchored on employment and economic development. The ANC also unveiled its manifesto ahead of this year’s elections.
The statement, which the ruling party presents at the beginning of every year, usually sets the tone for the President’s State of The Nation Address that outlines government’s service delivery progress, and a plan of programmes and priorities of government.
Addressing a packed stadium, Zuma said, “The ANC will expand our already significant public employment programme and we aim to provide six million work opportunities. The majority of these jobs will be reserved for young people. We are also increasing the number of training and skilling opportunities for young people throughout the state-owned enterprises and other government entities. Our infrastructure programme continues to generate massive numbers of sustainable jobs.”
He said the ANC saw the implementation of a national minimum wage as a key intervention of reducing inequalities.
Zuma claimed that employment was now higher than it has ever been and the SA economy had regained the one million jobs lost as a result of the 2008 global economic crisis.
However, DA National Spokesperson Mmusi Maimane disputed this. “The unemployment crisis is the single defining failure of President Zuma’s five years in office. The fact is, since he assumed the Presidency in 2009, more than 1.4 million more people have joined the ranks of the unemployed.”
Agang SA, whose leader Dr Mamphela Ramphele is visiting London next week, said the ANC’s election manifesto was a “predictable laundry list of promises” while it expected South Africans to conveniently forget past failures.
“Can the ruling party be so tone deaf to the disbelief and distrust citizens have towards it that it expects us to believe, without reason, that it will be able to meet these promises any better than it has in the past?” the party said.
Other key announcements that topped the ANC’s agenda for the next five years included:
* Improving education and training by making two years of pre-school education compulsory, eradicating adult illiteracy, bolstering teacher development, opening new universities and expanding the FET sector
* Implementing the National Health Insurance scheme beyond its pilot phase to improve the quality of health care while reducing the cost of medicine and treatment to promote access to the poor
* Providing housing opportunities to qualifying households in rural and urban areas for the next five years and connecting 1.6 million homes to the electricity grid over the next five years
* Clamping down on the current tender system. Zuma said regulations were being finalised that would prohibit public servants from doing business with the state. He said the ANC would institute internal procedures to deal with corruption.
* Zuma said the 1913 Land Act and the resultant dispossessions were directly related to the current problems of poverty, unemployment and inequality. He called on public representatives to finalise the legislation meant to speed up the expropriation of land in the public interest.
Zuma said government had made a lot of progress in the past five years to improve the lives of South Africans.
These included, among others:
* More than R1 trillion has been invested in national infrastructure projects, compared with R451 billion in the previous five years.
* The proportion of adults with access to banking services grew from 60% in 2009 to 75% in 2013.
* Nearly 500 informal settlements have been replaced with quality housing and basic services.
* The matric pass rate increased from 60.6% in 2009 to 78.2% in 2013.
* FET enrolments doubled from 545,566 in 2010 to 657,690 students in 2012.
* Loans and bursaries to poor students grew from 2.3 billion in 2008 to 8 billion in 2013.
* Over seven million learners are in no fee schools, up from five million in 2009.
* Teacher education has expanded-the number of new teacher graduates doubled from 6,000 in 2009 to 13,000 in 2012.
* Through the ‘prevention of mother to child transmission’ programme, the number of babies born HIV positive was reduced by 66% from 24,000 in 2008 to 8,200 in 2011.
* Average life expectancy increased by 4 more years to 60 years in 2012.
Labels: ANC, EMPLOYMENT, JACOB ZUMA, JOBS, UNEMPLOYMENT
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Nkulukusa urgesmjob creation
By Kabanda Chulu
Sat 07 Dec. 2013, 14:00 CAT
ECONOMIC policies being implemented will only be meaningful to people if they impact positively to result in job creation and poverty reduction, says finance permanent secretary Felix Nkulukusa.
Nkulukusa said on Thursday that Zambia was experiencing consistent high levels of economic growth of around six per cent, single digit inflation, stable exchange rate and a favourable external sector performance.
"Something is missing…is it policy or implementation or advice? There is something we need to put in place because poverty levels are still high and income inequality in the country has remained high?" Nkulukusa asked at a national economic development conference in Lusaka. "60 per cent of our people are poor and out of five million people that are supposed to be working, only 800,000 are in formal employment. The rest are in the informal sector where it is costly to formalise their businesses."
He said the government was looking forward to incorporating views from key stakeholders and think-tanks to ensure that economic policies were resulting in job and wealth creation.
"When the wind of change blew across the Western world, there was a correlation between economic growth and poverty reduction, even in Asia it was the same but in Africa we are experiencing positive economic growth but no correlation with job and wealth creation. Should we remain poor or join the bandwagon? There is so much frustration among the people and to address this, we need the involvement of others since government alone can't do it. We need think-tanks to periodically engage us on policy issues that touch on the lives of the people so that government's objective of putting in place policies and programmes that benefit the grassroots are actualized with the input of research institutions whose advice is solidly based on facts."
He emphasized the need to have well defined institutional arrangements for interaction with the think-tanks.
"Let us develop institutional frameworks and capacities for policy dialogue because advice that is delivered through other means other than direct interaction with policy implementing institutions results in misunderstandings and are therefore not a viable alternative for us," said Nkulukusa.
The conference under the theme 'Growth, poverty and inequality: creating opportunities for all' was organised by the Zambia Institute for Policy Analysis and Research, National Economic Advisory Council and the International Growth Centre.
Labels: FELIX NKULUKUSA, JOBS, UNEMPLOYMENT
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500 NFCA miners lose employment
By Misheck Wangwe in Chambishi
Thu 05 Dec. 2013, 14:00 CAT
OVER 500 miners that were constructing NFCA's South East Ore Body in Chambishi have been laid off following the decision by ZEMA to halt the operations.
And the unionised workers yesterday staged a protest in Chambishi demanding that ZEMA rescinds its decision to suspend the construction of the SEOB.
But the Southern Africa Resource Watch says ZEMA must be commended for acting decisively over the SEOB as it was being constructed without considering the interests of the poor community and other stakeholders.
The Zambia Environmental Management Agency ordered the Chinese-owned Nonferrous Cooperation Africa Mining of Chambishi to halt its operations at its South East Ore Body project for failing to comply with the laid down conditions of the investment.
But NFCA chief executive officer Wan Chunlai described ZEMA's decision as shocking and rather draconian.
In an interview yesterday, NFCA corporate affairs manager Nelson Jilowa said the workers had been laid off because ZEMA had suspended the operations at SEOB.
Jilowa said as a law abiding mining company, NFCA management had suspended all operations at the SEOB project and the workers had been sent home.
"As NFCA, we were taking the SEOB project and the employees as one. We cannot make any development without the employees and it's not our intentions to send them home, it is ZEMA's decision. When a decision is made to lift the suspension, the employees will be called and remember, it's not only these 500 miners, there are about 5,000 prospective employees whom we envisage to employ at the completion of this project and they have also been seriously affected," Jilowa said.
He said the laid off miners would be paid their accrued dues.
Jilowa said NFCA had no option but to comply with ZEMA's directives.
"In the absence of the audit report, which to us is the basis of this decision by ZEMA, one would be left with no option but to speculate that it could be the misunderstandings that have been there between us from NFCA and Hybrid Poultry Farm that has contested this project," Jilowa said.
He said the mining company was on the ground and had created a cordial relationship with the municipality, the community in Twashuka and Mukulumpe areas that would be affected by the SEOB project.
"We have put up a package for the affected communities and people are very happy. We updated ZEMA about this," Jilowa said.
Meanwhile, hundreds of NFCA workers from the suspended SEOB protested in Chambishi demanding that ZEMA immediately lifts the suspension because their families would suffer.
The workers that attempted to match to Hybrid Poultry Farm were intercepted by the police and senior officials from the National Union of Miners and Allied Workers.
NUMAW president James Chansa appealed to the workers to be calm as the union would sit with all stakeholders involved to resolve the matter.
The workers later dispersed.
But the Southern Africa Resource Watch campaign officer for Zambia Edward Lange said the suspension of the SEOB projects was long overdue because NFCA was doing it without due regard for the community.
"If you go to the municipality, they don't even have where they are going to take those people. If investors are going to be taking Zambia like an animal farm where they can do anything that they want without observing the laws of the land, then we are not going anywhere. ZEMA must be allowed to execute its mandates diligently and professionally without any interference," said Lange.
NFCA's SEOB project worth US$832 million (about K5 billion) was approved by ZEMA on September 5, 2012.
Labels: JOBS, MINING, NCFA, UNEMPLOYMENT
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Physically challenged bemoan failure to get jobs in Solwezi mines
By Vincent Chilikima in Solwezi
Thu 05 Dec. 2013, 14:01 CAT
PEOPLE living with disabilities in Solwezi have bemoaned the lack of employment opportunities in the mines despite their desire and ability to work.
North Western Province chairperson for Zambia Federation of the Blind Godfrey Makwayanga said the disabled were finding it difficult to be employed in the mines. He appealed to the mines to instead consider employing children of the disabled.
Makwayanga's concerns on the lack of employment were echoed by a sketch performed by the hearing impaired during this year's commemoration of the International Day of the Disabled held on Tuesday at Mitukutuku farm for the disabled in Solwezi district.
The sketch depicted how the hearing impaired were being denied employment in the mines and chain stores regardless of technical qualifications acquired for the jobs and therefore felt stigmatised and discriminated against in society.
However, First Quantum Minerals Kansanshi Mine public relations manager Godfrey Msiska said the employment policy of the mines considered the hazardous environment and high safety standards which required employees to be highly alert and swift in movement.
After handing over ten wheel chairs worth K20,000 at the event, Msiska said Kansanshi Mine's philosophy was to empower people in communities where they operate.
And Zambia Agency for Persons with Disabilities (ZAPD) Provincial coordinator Living Ngandwe appealed to the government and well wishers to revamp the 312 hectares Mitukutuku Farm.
Ngandwe explained that the UNIP government had built structures at the farm for training disabled people in farming and carpentry, adding that many disabled people had realised meaningful livelihoods from the now defunct facility.
Meanwhile, North Western Province permanent secretary Augustine Seyuba said the government was committed to promoting the rights of persons with disabilities.
Officiating at the function on behalf of Seyuba, deputy permanent secretary Alfred Chingi said government had come up with a new disability Act No. 6 of 2012 to ensure that the rights and welfare of people with disabilities were taken care of.
He disclosed that government had increased the grant for ZAPD in the 2014 budget and further removed customs duty on imported equipment and vehicles for the disabled adding.
Seyuba also said the disabled were being given priority attention in accessing farming inputs under government's Food Security Pack programme being implemented by the Ministry of Community Development, Mother and Child Health.
Labels: JOBS, UNEMPLOYMENT
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PF has created 350,000 jobs - Sata
By Masuzyo Chakwe
Sat 30 Nov. 2013, 14:01 CAT
PRESIDENT Michael Sata says more than 350,000 jobs have been created from 2011 to November 2013. He said yesterday that the government would continue exploiting advantages in labour and natural resources, and actively developing labour-intensive industries and enterprises that have huge employment capacity.
"The total number of jobs created from 2011 to November 2013 is 354,508 as follows: tourism and arts 218, 344, service 55, 885, electricity gas and water 28, 618, construction 15, 091, education 10, 099, finance and banking 9, 477, community social and personal 4, 998, health 3, 030, agriculture forestry and fishing, 3, 153, transport and communication 2, 725 and others 3, 088," President Sata said.
President Sata reiterated the government's commitment to maintaining macroeconomic stability and addressing the cost of doing business in order to accelerate overall economic growth of our country.
He said the notable increase in Foreign Direct Investment (FDI) inflows reflects renewed investor confidence in the Zambian economy and stronger investments profitability prospects.
President Sata says FDI is critical to the continued growth of the economy, poverty reduction and employment creation.
"...as of November 2013, investment pledges were valued at over US$5 billion, whilst foreign direct investment (FDI) inflows in 2012 grew by 56.2 per cent to US$1.7 billion, from US$1.1 billion recorded in 2011, driven largely by investments in mining, manufacturing, construction and the wholesale and retail trade sectors," President Sata said in a statement issued by his special assistant for press and public relations George Chellah.
"Furthermore, as of November 2013, non-traditional exports (NTEs) were valued at over US$3 billion whilst for the period 2012 NTEs increased to over US$2.8 billion compared to US$1.8 billion in 2011."
Labels: JOBS, MICHAEL SATA, PF, UNEMPLOYMENT
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Govt committed to job creation - Sata
By Masuzyo Chakwe
Sat 19 Oct. 2013, 14:01 CAT
PRESIDENT Michael Sata says the government attaches great importance to employment creation as the topmost strategy for ensuring the stability of society and overall growth of the economy.
And President Sata says the economy has so far created more than 326,480 jobs since the PF took office. He said the
construction of road infrastructure would open up the country for increased trade and investment opportunities, thus creating more jobs.
"Under the Link Zambia 8,000, which has seen 1,500 km being constructed under phase 1 and the L400, which has progressed significantly with over 150 km of roads to be completed by the end of this year, a total of 16,457 people mainly youths have been employed on road projects throughout the country as follows: Lusaka 2,976, Central 1,173, Copperbelt 1,587, Eastern 1,540, Luapula 1,819, Muchinga 2,366, Northern 1,973, North Western 578, Southern 1,132 and Western Province 1,313," the President said in a statement issued by his special assistant for press and public relations George Chellah yesterday.
President Sata said under the Pave Zambia 2,000 programme, work had commenced in Lusaka's Chawama compound and Petauke in Eastern Province.
He implored the Road Development Agency to accelerate implementation of this programme in all the provinces in order to create more job opportunities for the youths.
President Sata also said the government plans to rehabilitate over 1,300 kilometres of the core feeder road network countrywide.
"So far, the economy has created more than 326,480 jobs since the Patriotic Front PF took office as follows: arts and entertainment 174,052, tourism 44,292, services 31,336, electricity, gas and water 27,369, construction roads 16,457, education 10,099, finance and banking 5,521, community, social and personal 4,329, health 3,127, agriculture, forestry and fishing 3,185, transport and communication 3,625 and other 3,088 jobs," he said.
President Sata reaffirmed his government's commitment to creating a better Zambia for all in line with the PF manifesto.
Labels: EMPLOYMENT, GEORGE CHELLAH, JOBS, MICHAEL SATA
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(HERALD ZW) Ministry to prioritise job creation
September 24, 2013
Prosper Dembedza Herald Reporter
HIGHER and Tertiary Education, Science and Technology Development Minister Dr Olivia Muchena yesterday said her ministry will prioritise initiatives that expand work opportunities for college leavers to spur growth and job creation. Opening a strategic planning workshop for the ministry in Harare, Dr Muchena said her ministry will focus more and align all its priorities as outlined in the Zanu-PF manifesto.
The Zanu-PF 2013 manifesto dubbed: “Taking Back the Economy,” aimed to “Indigenise, Empower, Develop and Create Employment.”
She said universities, polytechnics and colleges around the country should come up with initiatives that promote, drive and improve employment for college leavers to address joblessness, one the major problems facing the country.
“As we go about re-organising this critical sector our policies must be oriented towards the goals of indigenisation and economic empowerment of our people,” Dr Muchena said.
“This is the centre-piece of our manifesto. This is what the people voted for and it must become the centre-piece of our endeavours. We must not let the people down.
“Zanu-PF won a resounding mandate to execute its manifesto which in brief is to indigenise, empower, develop and create employment and this is where we are deriving our mandate from.”
Minister Muchena urged workshop participants to develop a strategic direction for the ministry, guided by the ruling party’s manifesto.
“Our sectoral question is, what is the role and unique contribution of Higher and Tertiary Education Science and Technology Development Ministry in the process of indigenisation, empowerment, development and employment creation,” she said.
“We need to have that mandate as a centre-piece and we take our strategic direction from it as we go on with our process of integration.”
She said heads of departments under her ministry should be confident about themselves first to achieve the ministry’s goals and objectives.
“We must believe in ourselves in order to achieve our goals and objectives.
What better instrument can we use than higher and tertiary education to make people believe in themselves that they can indigenise empower, develop, create employment than education,” she said.
She also spoke highly about the country’s literacy levels and human capital development that has seen most Zimbabweans getting top jobs across the world.
The country, she said, needed to tap into this pool of talent to develop the nation.
Labels: JOBS, OLIVIA MUCHENA
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(NEWZIMBABWE) Miner Cuts Wages AS Gold Price Dips
19/07/2013 00:00:00
by Business Reporter
GOLD miner New Dawn Mining has warned that it might have to shut or sell its operations in the country if the gold price continued to slide and its cost-reduction measures failed.
New Dawn, which operates five mines in the country employing about 3000 people, is implementing measures to drive down costs following a strategic review of its operations in an April review.
Lower gold prices, combined with the uncertainty surrounding the implementation of the indigenisation programme and current limitations on the availability of investment capital, have placed "undue" pressure on New Dawn's mining operations.
Gold slid to a low of $1 192/oz on June 28 - a level not seen since mid-2010 - and despite a recent rebound taking the metal to a range of $1 200/oz to $1 300/oz in July, prices are still well below the high of $1 889/oz in 2011.
“The decline in the gold price since October 2012 has had a significant and increasingly negative impact on the Company’s mining operations, profitability and operating cash flows,” the company said.
The Canada-listed junior has now frozen all capital development projects, except those needed to sustain production for six months. It also negotiated temporary price reductions with suppliers of various critical supplies, ranging from 5% to 15%.
New Dawn said it had successfully negotiated an initial 25% wage reduction pertaining to all the occupation levels of its 3 000 employees.
The company added that it would eliminate, or reduce, certain administrative positions in Canada and Zimbabwe, and that it had already reduced, or deferred, certain costs at its corporate offices in Toronto, including management compensation and board fees.
Further, New Dawn said it would focus on operating efficiencies, including adjusting the cut-off grades that were being mined, which could help improve the recovered grades and resulting gold output.
“If (these) measures are not sufficient to enable the company to operate its mines in a commercially viable manner and generate sufficient operating liquidity, or if the world price of gold continues to decline further, the company may be forced to consider shutting down its operations, either temporarily or permanently, and/or liquidating its assets in a formal or informal arrangement,” management said in a statement.
“The company’s efforts to address and improve operating viability at its mine sites are subject to various factors outside of its control, including, for example, taxes and royalties, mining fees, power costs, the (local) economic and business environment, and potential changes to the legislative and regulatory environment, any of which could impact operations, capital requirements and ability to operate in a commercially viable manner or at all.”
The company said it did not expect the cost-reduction measures to negatively impact on gold production in the short term, adding that it was exploring other options, including significant changes to its operating and capital structure, divestitures, joint ventures and various structured financings.
New Dawn reported a 4.7% year-on-year increase in gold production to 9,986 oz in the June quarter, of which 9,168 oz were attributable to the company. Its gold sales, on a consolidated basis, declined by 10.2% to $13.62-million, compared with $15.16-million a year earlier.
The average sales price per ounce of gold declined to $1,399 for the June quarter, from $1,608 in the March quarter.
New Dawn owns 100% of the Turk and Angelus, Old Nic and Camperdown Mines.
In addition, through its Falcon Gold Zimbabwe Limited subsidiary, the company currently owns 84.7% of the Dalny, Golden Quarry and Venice Mines, and a portfolio of prospective exploration acreage in the country.
With the exception of the Venice Mine, all the mines are currently operational.
Labels: GOLD, JOBS, NEW DAWN MINING
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FQM layoffs are meant to blackmail govt - SARW
By Misheck Wangwe in Kitwe
Mon 24 June 2013, 14:00 CAT
THE Earth Organisation says mining houses should not threaten the government with job losses in order for them to get away from their obligations regarding the environment.
And the Southern Africa Resources Watch says the intended mass lay-off of over 500 workers by First Quantum Minerals is merely meant to blackmail the government.
Commenting on reports that FQM will lay off 500 workers at its Sentinel Mine in Kalumbila in Solwezi which is under construction, The Earth Organisation executive director Lovemore Muma said the government should not be held at ransom by the company to disregard environmental requirements for fear of job losses.
"Development should be in the context of sustainable development, meaning that current needs should not compromise future generation needs. So the government should not just look at current worker needs but also future generations, that is our children and their children's children's jobs, because if we destroy the environment now the future generation will have no jobs. If we are going to lose 500 jobs and preserve the environment and create more sustainable jobs in the future so be it. Furthermore, before FQM started constructing the dam, they should have sought expert option from Zambia Environmental Management Agency (ZEMA)," Muma said.
He said the river where the mine intends to construct the dam was a source of water for several cattle farmers and villagers both up and down stream and according to ZEMA regulations, erection of any project of such a nature required the investor to seek necessary approval regarding environmental protection.
Muma wondered why FQM started building a dam on the river before seeking approval from the agency, adding that the mining company should not threaten the government with job losses for not following the requirement as set by ZEMA.
And SARW country coordinator Edward Lange said the government should not abandon the corrective process just for the purpose of satisfying the interest of the operator.
"As civil society, we are alert and adhering to the guidance given by the government, and as such any mishandling of the process will not give any sustainable business environment for the company. It has been three years now since the indigenous and host community started crying, the company has disregarded their concerns, and now that the government has come to the aid of people, it should be a win-win situation," Lange said.
"We also appeal to Zambians not to abuse their rights to acquire mining rights by selling the same at a later stage without due consideration of the welfare and rights of the host and indigenous people. The Kalumbila case is a very clear lesson for us in Zambia and the SADC region on how local people can disfranchise themselves. Such threats are baseless and temporal as what we appeal for is the consideration of the main concerns of the host community in the area," Lange said.
FQM spokesperson John Gladston was quoted saying that the company had been forced to lay off the workers because it could not sustain the current high workforce, while waiting for the ZEMA to lift a protection order that had prevented further construction of the Chisola dam.
Labels: EDWARD LANGE, FIRST QUANTUM MINING, JOBS, LOVEMORE MUMA, SARW
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KCM jobs secure
By Staff Reporters
Thu 06 June 2013, 14:00 CAT
Konkola Copper Mines has behaved the way a responsible investor should behave, says labour minister Fackson Shamenda. Konkola Copper Mines has with immediate effect halted plans to lay off 2,000 permanent workers.
Last month, KCM wrote to the mineworkers unions and the government over its intentions to reduce 2,000 permanent jobs across its operation citing a number of challenges prominent among them the downward trend of copper prices at the London Metal Exchange (LME), the increase in petroleum products, electricity tariffs, high cost of labour, the impact on operations arising from statutory instruments numbers 32, 33 and 78 and the increase in mineral royalty tax to six per cent.
The labour reduction plans by KCM were however widely condemned by a cross section of society and the government that challenged the company to handover its mines to the state if it had failed to run them.
In a statement yesterday, KCM public relations manager Joy Sata said the redundancy programme originally proposed by the company had been put off.
"KCM wishes to notify all stakeholders that it has been engaged in very progressive discussions with the government and the unions on the current challenges facing the company. As a result of the steps that are being jointly taken to address these challenges, significant progress has been made in identifying measures that will mitigate the company's financial and business challenges. KCM therefore wishes to advise that the redundancy programme originally proposed by the company has been put-off. The company, unions and government are engaging to find a lasting solution," Sata stated.
She said KCM was confident that during these discussions, the parties would reach a win-win solution.
Sata further commended the government and the unions for their positive contributions to the process.
Commenting on the development, Shamenda said he had a fruitful meeting with KCM management during which he, together with mines minister Yamfwa Mukanga, agreed that the mining company would not retrench any miners.
Shamenda said the government representatives advised KCM to look at other avenues other than retrenchments.
"We convinced them that that is not a right thing to do. I wish to pay tribute to KCM for listening and wish to hail them for being a responsible investor. I wish other managers in other foreign companies operating in Zambia could behave the same way," said Shamenda.
Mine deputy minister Richard Musukwa commended the company for listening to government and stakeholders over the issue.
"I want to applaud and thank KCM for taking such a bold decision in national interest and that they ought to ensure that operations are sustained. We have worked with KCM, I was an employee of KCM and we know that company and that's why we rejected and we strongly stood against its intentions to retrench 2,000 employees because we never believed that the company could abandon our people like that. I sincerely thank them for rescinding the decision," Musukwa said.
He said the general workforce at KCM must support the company by ensuring that it works hard to boost production and reduce the cost of operations.
Musukwa said employees at the mining giant must be motivated and must avoid pilferage of any form to ensure that the company and the jobs were saved.
He said the government remained open and committed to ensuring that the company survives.
Dr Kalombo Mwansa, former mines minister in the Levy Mwanawasa government, commended KCM, the unions and the government on the route taken.
"This is an excellent development and it shows the power of dialogue," Dr Mwansa said in an interview. "Dialogue is the way to solve problems. From what has happened, we can learn lessons that the power of dialogue is indispensable in solving any problem that should confront humanity in any form."
MMD president Nevers Mumba said urged government not to wait for a crisis when dealing with investors.
He said the government should always employ dialogue and enact favaurable policies that would also benefit investors.
"The issues at KCM worried us very much, but we pleaded with them to find other options to keep the jobs that were at stake. We are happy that the government has resolved this issue and have avoided unnecessary job losses," said Mumba.
Labels: JOBS, KCM, MICHAEL SATA, UNEMPLOYMENT
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Shamenda urges miners not to panic
By Misheck Wange in Kitwe and Ernest Chanda in Lusaka
Sun 26 May 2013, 14:01 CAT
LABOUR and social security minister Fackson Shamenda has appealed to miners and Zambians not to panic over reports that Konkola Copper Mines intends to lay off 2,000 miners. And the Mineworkers Union of Zambia (MUZ) says KCM's plans must be immediately halted by the government and all stakeholders.
Meanwhile, the Southern Africa Resource Watch (SARW) has accused the mining giant of not being insincere to the government about its operations and the plans to retrench employees. Shamenda yesterday said the law was very clear on procedures to be followed before any company could lay off workers and those procedures had not been exhausted in the case of KCM. KCM informed the government about its intentions to retrench 2,000 workers.
"It is a requirement that employers first engage the unions on their intentions and thereafter engage the government. So far, all these processes had not been exhausted by KCM," he said.
Shamenda said to this end, no miner would be retrenched at KCM.
He said the government had stepped in and was engaging KCM management and the unions to look at the reasons behind the proposal to retrench miners.
Shamenda assured the miners and the nation that it would take care of their interests and that no Zambian would unnecessarily lose employment.
He stressed that issuing statements on a matter, which had not been exhaustively concluded, would not serve anyone.
Shamenda has since banned issuance of any statements on the intention by KCM to lay off miners saying mining was a serious industry requiring only his deputy ministers and himself to be informing the nation.
Labour matters, he said, were very delicate and Zambians needed to be careful in the manner in which they issued statements hinging on people's livelihood. MUZ president Nkole Chishimba said the negotiations with KCM should not be aimed at mitigation of the idea of retrenchment but at halting the entire process of retrenchment.
Chishimba said the plans by KCM had a huge negative impact on the country as over 20,000 people would be subjected to misery if mining giant was allowed to trim its workforce.
"Remember that these people have families and one miner looks up to about 10 people plus the extended family. KCM will set a bad precedent if it will be allowed to do that. We urge our members and every employee at KCM to remain calm and work extra hard to boost production so that we leave management with no excuse. On the other hand, we have engaged the government, KCM and all stakeholders so that we resolve this issue amicably," said Chishimba.
And SARW campaign officer for Zambia, Edward Lange, said the retrenchment plans by KCM were retrogressive and contrary to the ideals of the PF government that was working hard to create jobs.
Lange said KCM must rethink its decision and sit down with the government to find a lasting solution to the problem.
He said the government must protect the people by not allowing KCM to retrench the workers.
In a letter dated May 23, 2013, addressed to MUZ, the National Union of Miners and Allied Workers (NUMAW) and United Mineworkers Union of Zambia (UMUZ), KCM vice-president human capital David Kaunda stated that the company would lay off 2,000 permanent jobs as it had been impacted by a number of economic and legacy issues that have made it imperative to review its operations for its continued viability.
And a member of the PF central committee in charge of labour Davies Mwila said the government would prefer that KCM leaves the mines rather than allowing them to retrench over 2,000 employees.
Mwila, who is also defence deputy minister, said the PF as a party in power had been watching closely the operations of KCM and its manoeuvres to deprive Zambians that had been working very hard over the years to stabilise the operations of the mining sector which was the backbone of the country's economy.
Mwila, who is also a former general treasurer of MUZ, said KCM had not been fair to the Zambian people in its operations despite the mining company enjoying good prices of copper and other metals at the international market.
"In fact, KCM's departure is long overdue. So, if they want to leave, let them go and God will give us other progressive investors ready to work with the government rather than allowing them to sack our people. Look, 20 years ago before KCM inherited those mines, the Zambia Consolidated Copper Mines (ZCCM) employed over 20,000 people when the price of copper was 2,000 dollars per tonne and this labour force was maintained," he said.
"When KCM took over, the number of permanent jobs drastically reduced and it's now below 10,000 despite the copper price at the London Metal Exchange being around 7,000 per tonne. Today they are telling us that they have to reduce the labour force further, no! We will not allow them to embarrass the PF government. Those reasons they have advanced to lay off are not genuine."
Mwila said that, in fact, the government was not happy with the operations of KCM looking at the dilapidated roads and public infrastructure in Chingola and Chililabombwe which are not fit for towns hosting of the world's largest mines .
Mwila said the owners of KCM had built a masterpiece university in India using the mineral resources extracted from Zambia but had failed to do the same to satisfy the custodians of the minerals who were the citizens of Zambia.
He said companies like Mopani Copper Mines, Lumwana, Kansanshi and many others were working hard to supplement government's efforts to create employment.
"Two years ago, KCM started outsourcing labour force as a way of indirectly sacking our people. They brought in U and M, they later cancelled the contract and over 700 people were left jobless. MMS is another company that was contracted to work underground, the company is no more as we speak and about 600 miners were retrenched. Another company, Black Smith, was contracted at the concentrator and over 400 people are on the streets and the list of contractors whose contracts have not been renewed at KCM is huge and these people (KCM) expect us to keep quiet? No we will not allow them," said Mwila.
On Wednesday, Germany's Federal Minister for Economic Cooperation and Development Dirk Niebiel urged Zambia to put in place measures that would enable it get better contracts to reap more benefits from the mining sector.
"… It is very important to find a way to use the mining sector for financing your own budget than you can do at the moment and we could give a helpful hand to have better contracts in the future for more income, revenues for your country to invest in your country," said Niebiel.
Labels: FACKSON SHIMENDA, JOBS, KCM, MUZ, SARW
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(NEWZIMBABWE, REUTERS) Amplats cuts 6,000 jobs in South Africa
11/05/2013 00:00:00
by Reuters
COMMENT - In Zimbabwe, the land reform movement had a huge shot in the arm from all the people who lost their jobs because of the IMF/World Bank's structural adjustment program (ESAP). If many people in South Africa lose their jobs, they may have no alternative except to get land. - MrK
ANGLO American Platinum said on Friday it would cut 6,000 South African mining jobs, fewer than half the 14,000 initially proposed, as it tries to restore profits without provoking a backlash from the government and restive unions.
The world's top platinum producer, a unit of Anglo American, added it would also keep open one of four shafts slated for closure near the platinum belt city of Rustenburg.
Amplats aims to slash platinum production by 10 percent or 250,000 ounces this year, equal to 4.5 percent of global output. Another 100,000 ounces will go in the medium term.
Under an original plan announced in January, it aimed to cut output by 400,000 ounces. The reduced job losses are likely to soften the blow for the African National Congress (ANC) government, which faces an election next year, but it remains to be seen if it appeases the anger of powerful local unions.
"Everyone is surprised. We were not expecting any retrenchment at all. We can't allow this," Sphamandla Makhanya, a worker committee member at Amplats in Rustenburg told Reuters.
"But before we do anything, we are going to have a mass meeting with the workers to decide what to do next."
For Amplats, reining in costs and cutting output to underpin the price of platinum, used for emissions-capping catalytic converters in vehicles, is crucial to getting back to profit.
The company said it would now aim to produce 2.2 to 2.4 million ounces a year, up from the 2.1 to 2.3 million ounces targeted in the original plan. The revisions should deliver 3.8 billion rand ($423 million) in savings by 2015.
"This is a significant step back to where we were and it doesn't feel like it addresses the radical problem of oversupply of material, weak or deteriorating demand environment," said analyst Paul Gait of Sanford Bernstein in London.
"The positive is this is an undoubted improvement from the kind of announcement we used to have from Anglo Platinum, which was a blithe disregard for market fundamentals, the cost base of their production - and a single minded focus on producing."
Amplats' shares extended losses on the day to be almost 3 percent lower in mid-afternoon trade in Johannesburg.
Sources told Reuters last week the plan would be watered down after talks with the government.
Chief Executive Chris Griffith said the company would discuss it with unions over the next two to three months.
He signaled the jobs target could be reached over time, saying on a call with analysts the company would look at reducing numbers by as much as 3,000 to 4,000 a year through attrition and would consider proposing early retirement for 1,500 employees over the age of 55.
Some older workers around Rustenburg on Friday said they were ready to hang up their tools.
Dressed in white overalls, Karel Mokgoatsi, a rock driller at Khomanani, one of the affected mines, said: "For others this will be bad news but for me it is good news. I am 60 years old and I am ready to go and have some rest."
Vow to fight
Hours before the announcement, activists from the militant Association of Mineworkers and Construction Union (AMCU) in Rustenburg said they would not tolerate any job losses.
"Where will 6,000 people in this economy go? They will engage in criminality," said Simon Hlongwane, an AMCU branch secretary at Amplats. "We as AMCU stand ready to fight."
Social tensions are running high after violence rooted in a labor turf war between AMCU and the dominant National Union of Mineworkers (NUM) killed more than 50 people last year and provoked illegal strikes that hit production.
The unrest was a major reason why Amplats suffered its first loss last year. But with unemployment at more than 25 percent, the government has taken a strong line with Amplats.
The average South African mineworker has eight dependants, so the social and political consequences even of reduced lay-offs will be far reaching.
AMCU miners briefly closed several mines when the initial Amplats plan was unveiled in January. Its leaders said on Thursday they would not back such wildcat strike action.
AMCU emerged as the dominant union in the platinum shafts after it poached tens of thousands of disgruntled members from NUM, a political ally of the ruling African National Congress.
The union power struggle explains why the ANC and the government have dug in on the proposed Amplats cuts, a striking contrast to the past when the gold industry was allowed to cut tens of thousands of jobs to remain viable.
General elections are due next year, and for the ANC, the union war means it has lost tens of thousands of potential voters and their many dependants as the NUM is a vehicle for campaigning and getting out the working class vote.
Labels: AMPLATS, ANGLO AMERICAN CORPORATION, JOBS, PLATINUM
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Nationalisation of mines won't happen, says Shabangu
05 Feb 2013 11:29 - Chantelle Benjamin
The mines minister has told delegates at the mining indaba that the ANC and government are not interested in making mine nationalisation policy. Mineral Resources Minister Susan Shabangu has taken a reconciliatory approach at the 2013 African Mining Indaba, taking special effort to reassure investors that Africa, and South Africa in particular, is a lucrative investment.
Shabangu said on Tuesday she was aware that investors worldwide were looking with interest to government for indications about their positions on nationalisation and whether government would assist in creating an environment that allowed for mining industry, following the
very public spat between the minister and Anglo American Platinum over its decision to close four shafts and retrench about 14 000 staff members there.
The minister started her speech by recognising outgoing Anglo American chief executive Cynthia Carroll and incoming chief executive Mark Cutifani in the audience, Shabangu said South Africa was putting in place legislation that was intended to assist the mining sector and consequently the economy and government's job creation plans.
She told about 7 000 investors that nationalisation was not on the cards and was not being considered by the ANC or government. "Nationalisation is not an option for our country," she said.
The minister said the mining sector and government would need to work together to ensure that the social and structural problems that led to the unrest at the end of last year and into 2013 did not happen again.
"I am requesting that the mining sector work together to avoid a repeat of what happened last year. We cannot afford another Marikana," she said, referring to the violence that took place at Lonmin's Marikana platinum mine in August that left 44 people dead.
Shabangu acknowledged some challenges facing the mining sectors, including lower metal prices and higher energy costs. The platinum sector in particular was highlighted by her. She said a committee was set up last year June to look into the platinum sector.
A more coordinated strategy was being developed by government around the awarding of mining licenses to ensure faster turnaround for mining companies when it came to the approval and to ensurance that quality licenses were awarded.
Skills shortage
Skills shortage in the mining sector was recognised by government and it was actively working to address that, Shabangu said.
"I am very encouraged by the number of learners who are enrolling as engineers," she said.
Shabangu said the growth in the number of mines from 993 in 2004 to 1 000 in 2013 and employment now at 530 000 – down slightly in quarter four – was encouraging and indicated the value of South Africa as a mining destination.
She said it was important for all stakeholders to "be flexible to changes" and to ensure long term sustainability. Shabangu added it was vital for the country to have a sustainable tax regime that ensured South Africa's mining sector became the sector of choice.
Cape Town's mayor Patricia de Lille on Monday told delegates at the mining indaba that it was time for South Africa to see the benefits of being a mineral rich country.
"This indaba comes at a critical point in mining in South Africa. SA seems to have drawn little benefit from the commodity boom," she said.
Giving back
Taking government's line, De Lille told about 4 000 mining industry and subsidiary services that it was time to give something back after years of benefitting from the resources.
She said that there was a need at the indaba for meaningful debate around how to ensure that the country benefitted directly from its resources through beneficiation.
This year's conference is the largest ever held, with over 7 500 delegates, including mining executives, ministers, foreign investors and analysts.
Labels: CYNTYIA CARROLL, JOBS, MARK CUTIFANI, NATIONALISATION, NEOLIBERALISM, SUSAN SHABANGU
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COMMENT - So much for the 'they will bring jobs' brigade. I have always stated the bleeding obvious, even when the paid MMD shills were advocating the idea that we don't need to be paid taxes or dividends on our own copper, because the mining companies 'will bring jobs'. Foreign investors are not here to 'bring jobs', they are here to maximize returns to shareholders (maximize price, minimize costs), through dividend payments or the shareprice itself. So unless you are a shareholder and don't get cheated, you don't benefit from foreign ownership of the mines at all. All the present activity is floating on top of record high copper prices.
Over 600 lose jobs at KCM
By Darious Kapembwa in Kitwe
Fri 11 Jan. 2013, 14:00 CAT
OVER 600 miners have lost jobs after Konkola Copper Mines refused to renew U&M's contract, one of the largest companies contracted by the mine.
KCM public relations manager Joy Sata announced in a press statement that U&M's contract expired on December 31, 2012 and the terms have not been agreed for renewal of the contract.
"KCM is committed to all the projects that it has undertaken in order to expand and increase the life of the mine at Nchanga and Konkola. It is common knowledge that KCM operates two open pit mines in Nchanga, and one of them, Chingola open pit F and D, is mined by a contractor, U&M Mining services of Brazil..." read the statement in part.
"During the demobilisation period, KCM expects a gap as management explores options of operating the pit. However, employees under U&M working at COP F&D will be given priority for engagement once the pity is operational," Sata stated.
The company employed over 600 workers in various categories of the industry.
Mineworkers Union of Zambia president Chishimba Nkole said his union needs to liaise with the mining company before issuing a comprehensive statement regarding the loss of jobs.
Labels: JOBS, JOY SATA, KCM
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Re-establishment of public employment services on cards
September 6, 2012
By NANCY MWAPE
GOVERNMENT will next year re-establish
public employment services to address unemployment in Zambia that still remains a challenge. Minister of Labour and Social Security Fackson Shamenda says Government is working on a number of interventions to address unemployment in the country.
“Indeed, unemployment still remains a challenge in Zambia; we are still faced with a large informal sector with little or no decent working conditions,” he said.
Speaking at the Friedrich Ebert Stiftung (FES) annual reception held in Lusaka on Tuesday night, Mr Shamenda said Government will also implement apprenticeship or internship programmes in collaboration with employers’ organisations.
He said the Ministry of Finance and Youth and Sport are leading the development of youth empowerment schemes while the Labour Ministry together with other partners is leading the development of the 2012 – 2015 decent work country programme.
Mr Shamenda said his ministry is working with the central statistical office to conduct the 2012 labour force survey on baseline data for assessing performance scheduled to commence in two weeks’ time.
He said the ministry will also put in place an overarching employment promotion strategy to replace the national employment and labour market policy that has been in place since 2005 but was not implemented.
“Government will remain true to its word. What we have done in the past eleven months is in line with the party manifesto.
Working with FES and the International Labour Organisation, we have engaged a consultant who will work on a roadmap on comprehensive labour laws,” he said.
Mr Shamenda said it is common knowledge that when the PF took over the country, it had fairly good economic indicators in terms of inflation rates and growth but noted that the social situation in the country at the time left much to be desired, which was manifested by very high unemployment, underemployment levels and rampant abuse of workers’ rights.
He also commended FES for its contribution made over the years in the areas of capacity building for labour administration and general governance.
Earlier, FES resident director Heiner Naumann cited civic education, research in socio-economic matters, support of trade unions, small scale industries and democratic organisations as part of the institution’s areas of support.
Mr Naumann said FES believes in a principal functioning of Zambian democracy adding that the fight against corruption, decent conditions of work and the empowering of underprivileged groups of the society are a great concern.
Labels: FACKSON SHAMENDA, JOBS, LABOUR, UNEMPLOYMENT
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Initiatives are underway to create decent jobs in the country-Guy Scott
TIME PUBLISHED - Monday, July 9, 2012, 9:35 am
Vice President Guy Scott says
a number of initiatives are underway to create decent jobs in the country. Dr. Scott has explained that since the PF took over government nine months ago it has been
restructuring the economy, which would be a basis for creating employment.
The Vice President was speaking on a ZNBC LIVE television programme dubbed Sunday Interview on Sunday night. And Dr. Scott has stressed that
government will not give any preferential treatment to any foreign investors.
He says investors from all over the world including the Taiwanese are welcome to invest in Zambia.
Meanwhile, Dr. Scott says government has been sourcing for long term funding to build houses in the country.
He says currently the country has about three million housing deficit.
And Dr. Scott has advised opposition political parties who have a tendency of running to foreigners whenever they are aggrieved to STOP.
Dr. Scott has explained that any well meaning Zambian should strive to work together towards developing the country.
The Vice President is particularly concerned that some of the things some opposition leaders say are NOT useful to the country.
And Dr. Scott says the PF government has always had an open door policy, adding that opposition leaders are welcome to approach government on issues they feel aggrieved with.
Labels: ECONOMY, GUY SCOTT, JOBS, PF
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UMUZ backs Sata's call for permanent jobs
By Isaac Zulu in Kapiri Mposhi
Thu 05 July 2012, 13:23 CAT
UNITED Mineworkers Union of Zambia general secretary Wisdom Ngwira has supported President Michael Sata's position on creating permanent employment opportunities in the country.
In an interview, Ngwira said there was too much casualisation in Zambia, including in the mining sector. He said President Sata's pledge to create decent and permanent employment for the citizens should be supported by all well-meaning Zambians.
"The President's position on this matter is a welcome one. President Michael Sata's desire to create decent, permanent and probably pensionable employment should be supported by all well-meaning Zambians," Ngwira said.
"There's been too much casualisation in our country in all sectors of the economy, and the mining sector is no exception. Therefore, as UMUZ we are very impressed with the PF government policy on the need to create permanent jobs for the people. We shall rally behind this PF whose policy is about creating permanent formal employment opportunities."
He said the government should be given time to engage genuine investors and, subsequently, address the problem of high unemployment levels in the country.
"Rome was not built in a day. It took Italians some time to build Rome. Some concerned stakeholders should give President Michael Sata and his PF government time to woo and engage genuine investors. That will ultimately see the PF addressing the challenge of high unemployment levels in the country," Ngwira said.
"At the moment, there are minimal job opportunities in Zambia and this is the major cause of casualization in Zambia."
He said having genuine investors in sectors such as agriculture and mining could create long-term employment opportunities for Zambians.
"…We shall see youths being employed. And this will translate into the PF government's policy people 'having more money in their pockets'. I can only ask the stakeholders to exercise patience with His Excellency President Michael Sata on his desire to create decent jobs for Zambians," said Ngwira.
Labels: CASUALISATION, JOBS, MICHAEL SATA
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Create jobs people want, Magande advises government
By Allan Mulenga
Wed 04 July 2012, 13:23 CAT
NG'ANDU Magande says people are desperately looking for jobs which they will enjoy and not to work in the security forces.
Commenting on President Michael Sata's pronouncements that the government will embark on a continuous recruitment in the security forces as a way of creating employment for unemployed youths, Magande, the National Movement for Progress party president, said youths were queuing up for military recruitment because they did not have anything to do.
"Does he President Sata believe those thousands of young people who went there are looking to work in security forces? They are actually looking for jobs. They are not looking to work in security forces. Let him create jobs which people want. The people that went and queue up in Mpulungu where we lost so many of our women there, that is not part of the security. He says, 'I want permanent jobs', those people in Mpulungu were not looking for permanent jobs which will give them pension. They are looking for jobs that can give them money for today to buy food for their families," he said.
Magande, who is also former finance minister in the MMD government, doubted the feasibility of the proposed continuous military recruitment exercise.
"Those are blanket statements that are not supported by action. If they say they are going to have continuous military recruitment, what are these people going to do? In some countries during peace time the security forces like the Zambia Army they are made even to do other jobs like infrastructure development. Why doesn't he complete the statement? They are not going to beef up the Zambia Army just because people want to get jobs or employed; they must have something to be occupying them," he said.
Magande urged President Sata to be rational in his approach to governance.
"Every time he President Sata makes a statement and then you don't ask him for details because he has no opportunity. The man can't even hold a press conference so that you are able to ask him questions. During his inauguration, he said that 'national service was going to be turned into a civilian production unit'. What has he done about it? We are waiting to hear the measures that have been taken. Before that is elaborated, now he says 'security forces are going to be recruiting people continuously'. These statements are just coming, they are not followed up with actual plans and programmes of how it will be done," said Magande.
Labels: JOBS, NG'ANDU MAGANDE, UNEMPLOYMENT
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Zambians not benefiting from economic growth - Rev Matale
By Gift Chanda in Kabwe
Wed 13 June 2012, 13:24 CAT
ZAMBIANS will only appreciate economic growth resulting from huge investments in the mining sector if it directly benefits them, says Council of Churches in Zambia general secretary Reverend Suzanne Matale.
Speaking at the chiefs' indaba on enhancing transparency and accountability in natural resource management yesterday in Kabwe, Rev Matale observed that the much-talked about economic growth spurred by a boom in the country's mining sector had not really translated into benefits that Zambians could appreciate.
"We are still wallowing in poverty. We know that Zambia has been declared, according to economists, a fast-growing economy. That is wonderful news, however for me the only way I can understand that Zambia's economy is growing is by what is presented on a poor persons table. Is there breakfast, is there lunch and dinner or are the children going to school? That is the only way I will appreciate that the economy is growing," she said.
"We are endowed with so much natural wealth yet we are still ranked among the poorest nations. This shows that something must be really wrong somewhere."
Rev Matale said it was important that Zambians realised actual benefits from their natural resources such as copper.
"While we are not against investors making profits, we want fairness in the distribution of resource from our mineral wealth," she said.
"God put these resources here in Zambia to benefit the locals because if He had wanted, He would have taken them to Angola but He put them here because He understood that it is for the benefit of the Zambians."
She said calls by the Church and other stakeholders for increased benefits from the mining sector were not aimed at rattling foreign investors in the country.
"The intention is not to alarm anybody. The intention is to raise the flag from where we are because as a church we are everywhere and so we are a bit informed about the poverty situation of the people in their communities," said Rev Matale adding that "All we want is a win-win situation."
But mines deputy minister Richard Musukwa said the government was alive to the fact that it was people's frustration over things like mineral wealth not benefiting them that led to a change of regime.
"We are aware that our people want development and they want it real quick, so we will not take such concerns for granted," he said.
Musukwa further said it was sad that traditional leaders, as the custodians of development, were usually left out when it comes to investments in natural resources.
He urged the meeting to identify ways of implementing the provisions in the 2008 mines Act on resource sharing with the community from which the ore is mined.
Musukwa said traditional leaders and non-governmental organisations like the CCZ could help find the missing link between Zambia's rich natural wealth and its impact on people's lives.
Poverty levels in Zambia, Africa's top copper producer, is said to be at 60 per cent in urban areas and 80 per cent in the rural areas.
The government has targeted annual economic growth of eight per cent over the next five years and wants to stabilise inflation around five per cent in the medium term as way of cutting on poverty levels although it has said it would not apply undue pressure on mining companies to pay more in taxes.
Meanwhile, chief Mumena of North Western Province said Zambia would only become a better place the moment seriousness was attached to tackling poverty.
"In Zambia we have neglected the poor due to our selfishness. Those that have would want to have and have for themselves alone while the poor remain poor," he said.
The traditional leaders' indaba comes a few days before Zambia hosts the International Mining and Energy Conference set for June 19-22.
Meanwhile, the traditional leaders are seeking full involvement in the development of the country's mining sector.
The traditional leaders made it clear during the indaba yesterday that they were unhappy with the way they are being left out in the development of the mining sector.
The traditional leaders raised concerns regarding the procedures in issuing licences to mining investors and that they were not consulted during the process.
Chief Mumena observed that traditional leaders are not consulted or involved by the government before mining licences are issued.
He said this situation was saddening because the traditional leaders who are left out in the first place are expected to find alternative land for people who are displaced by mining projects the government authorised without their involvement.
Chief Mumena said the mines and minerals Act of 2008 does not include the participation of chiefs in the mining sector development agenda.
He further raised concern at the rate licences are issued to investors in the mining sector.
Chief Mumena noted with sadness that local communities are being displaced to pave way for mining at an alarming rate, adding that no proper compensation packages are being given.
"We don't want development to be at the expense of the people. We want development to benefit everyone and this can only be done if the people at the grass root are involved," said Chief Mumena.
And chief Sinazongwe of Sinazongwe district in Southern Province expressed concern that investors were more interested in making profits and not the welfare of the local communities.
Chief Sinazongwe claimed that the mining investors had no regard for traditional leaders.
Other chiefs present at the meeting included chief Chimese of Mwense in Luapula Province, senior chief Musele from Solwezi and chief Matebo from Solwezi district.
Labels: JOBS, SUZANNE MATALE, UNEMPLOYMENT
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