Kamayoyo urges study of China’s FDI strategy
By Ernest Chanda
Mon 27 Dec. 2010, 04:00 CAT
ECONOMIST Kelvin Kamayoyo says that the increase in Zambia’s export of raw materials to China exposes the country’s weak trade policy. Kamayoyo yesterday said Zambia’s trade policy instruments such as export tax and incentives were relaxed.
“Zambia’s upsurge US$2 billion export values to China mostly driven by raw materials, especially minerals relative to US$200 million imports exposes Zambia’s weak trade policy instruments implication and further poses a threat to our wasting asset's sustainability. This extraordinary international trade imbalance between China and Zambia is alarming especially because Zambia’s trade policy instruments, for example export tax and incentives, tariff rate quotas appear to be relaxed,” he said.
Kamayoyo said that Zambia should invest resources in carefully studying and understanding China’s Foreign Direct Investment (FDI) strategy.
He said Chinese investment was isolated from Zambia’s real economy, apart from taxation remittances.
And Kamayoyo said Zambia had every right to impose trade restrictions in the mining sector in order to address fiscal challenges, among others.
He said the current situation was not yielding results because the country was allowing raw materials to be exported cheaply.
“In absence of binding commitments at multilateral level, Zambia has every right to impose trade restrictions in the mining sector in order to address fiscal challenges, environmental impact of the raw materials, alarming exploitation and elongate the lifespan of the wasting asset, copper,” said Kamayoyo.
“Notably, the prevailing situation is not yielding the desired results because Zambia is allowing raw materials to be exported cheaply if not at zero tariff and in turn import the finished products at exploitative prices.”
Labels: CHINA, FDI, KELVIN KAMAYOYO
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Address challenges of access to US markets - Kamayoyo
By Mutale Kapekele
Wed 15 Dec. 2010, 04:00 CAT
THE African Growth Opportunity Act is burdensome to sub-Saharan African countries as the continent has failed to penetrate the US market, says economist Kelvin Kamayoyo.
Kamayoyo, who congratulated Zambia for its selection to host next year's AGOA, said African negotiators should actively engage the US to produce a flexible trade and investment deal that was fair and less burdensome.
Kamayoyo, in an interview, wondered how Africa failed to access a seemingly open American market since the year 2000 when the AGOA was born.
He said AGOA beneficiary countries had struggled to effectively penetrate the US market due to the long distance “which exposes firms to high transaction costs, existence of sub-Saharan Africa inland poor transport infrastructure and generally high costs of doing business.”
Kamayoyo urged Zambia, which heads the negotiations team for Africa, to use the forum to address challenges of accessing the US market and find a lasting solution if the AGOA framework was to increase and effectively contribute to poverty alleviation especially among the eligible sub-Saharan African countries.
Kamayoyo also advised COMESA to take up an active negotiating role to ensure that its member countries easily accessed the US market.
Since 2000, there has been little trade between the United States and the 38 AGOA eligible African countries.
According to the US Trade Policy Review Report for 2010, AGOA and related imports were valued at US$33.7 billion in 2009, down 49 per cent from 2008 largely due to the downturn in the global economy.
Kamayoyo argued that the little trade experienced within AGOA framework could be attributed to the nature of the framework which “appears to be somehow selective and unpredictable because eligibility is annually assessed based on unilateral criteria with particular focus on improvement on labor rights, rule of law and movement toward a market-based economy.”
Kamayoyo said Zambia exceedingly met the AGOA criteria and deserved to benefit from the trade preferential market access offered by the US.
Labels: AGOA, KELVIN KAMAYOYO, MARKETS
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Lusaka economist calls for EAZ to be turned into a statutory body
By Mutale Kapekele
Mon 23 Aug. 2010, 04:00 CAT
THE Economics Association of Zambia (EAZ) constitution lacks sharp enforcement teeth and should be turned into a statutory body, Lusaka economist Kelvin Kamayoyo has suggested.
Kamayoyo yesterday said the EAZ constitution, which was passed on March 5, 2002, lacked sharp enforcement teeth capable of enhancing and strengthening monitoring mechanisms and keep a bird’s eye-view of the conduct of its general membership, and effectively collect membership subscription fees.
“It is against this backdrop that EAZ should be turned into a statutory institution like many other professional bodies namely; Engineering Institute of Zambia, Health Professionals of Zambia and Zambia Institute of Marketers,” Kamayoyo said.
“EAZ with an Act of parliament would ensure that the general public is cautioned that it was an offence under the Economics Professions Act of the Laws of Zambia to impersonate any economics practitioner or to employ unregistered economics practitioner in both the public and private sectors for purposes of providing economic planning and management, and other services in Zambia.”
He said that once EAZ was turned into a statutory body under the relevant Act of Parliament, the Association would then have the jurisdiction to monitor all “economic activities taking place in the country, sustain itself financially through statutory fees legally collected and be able to undertake all the programmes outlined in its strategic plan.
On August 28, EAZ will be holding an Annual General Meeting (AGM - 2010) and is expected to outline the strategic direction of the Association, framing the policy and strategy for managing the secretariat.
Kamayoyo advised the EAZ to use the AGM to determine its direction in terms of development and growth within the provisions of the association’s constitution and the mandate given by the executive committee as well as general guidelines.
He observed that through an Act of Parliament, the Association would be provided with authority to register all economists and other economics related disciplines in order to qualify to practice as an economist in Zambia.
“It is pertinent that we all support this timely and unique transitional path towards making the EAZ a statutory body because whatever we establish as economists belongs exclusively to us and the general economic agents, and it is our fundamental responsibility to ensure that structures and legal framework put up does not adversely affect the economy in general nor the national vision,” Kamayoyo said.
“In addition, for economists to proactively and reactively safeguard the character of economics discipline in Zambia, the penalties or sanctions for anyone who abrogates the would be Act of Parliament to regulate economists should be stiffer and the disciplinary procedures equally ought to be unconcealed and brisk because justice delayed is justice denied.”
Labels: EAZ, KELVIN KAMAYOYO
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EPAs to affect trade among ACP countries – Kamayoyo
By Fridah Zinyama
Thu 27 May 2010, 04:00 CAT
ECONOMIST Kelvin Kamayoyo has said trade amongst African, Caribbean and Pacific (ACP) Countries is likely to reduce due to trade diversion if the Economic Partnership Agreements are signed. Ideally, EPAs are expected to promote regional integration due to expanded market coverage for either party.
Zambia is currently negotiating EPAs under the Eastern and Southern Africa (EAS) countries and among all six negotiating groups, by 2008 only the Caribbean Forum had concluded a full or comprehensive EPA covering trade in goods and services and a host of other trade-related areas such as competition policy and intellectual property.
Kamayoyo who gave his personal views on EPAs said the ability of the manufacturing industry to grow shall also be threatened.
He said EPAs were no longer a free trade arrangement because individual countries were forging ahead to sign the EPAs contrary to their regional visions of customs union agenda and by so doing the agreement would not breed a free trade but a bilateral trade agreement in nature based on single state and not territorial customs union.
“ACP countries and in particular African countries must hasten regional integration processes to build and consolidate supply side capabilities before opening up to the EU,” he said.
Kamayoyo said if the EPAs were to be supportive of development and regional integration in Africa, this would require extensive technical and financial support from the EU and other co-operating partners.
“As for the EU, they have to ensure that both EDF and EPAs development envelopes are timely disbursed and properly utilised,” he said. “Therefore some transitional protection (safeguards) for local producers should be negotiated, for longer transitional periods (30 years) beyond current proposals,” he said.
Kamayoyo said the EU should face the reality and appreciate the fact that the EPAs were not going to create a fair and enabling environment capable of buttress flying regional integration for most ACPs regional economic communities for as long as they continue to offer subsidies to their industries.
Labels: EPAs, KELVIN KAMAYOYO
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