Sichinga accuses China of raping Zambia’s resources
By Mutale Kapekele and Chiwoyu Sinyangwe
Tue 09 Feb. 2010, 04:01 CAT
CHINESE investors are in Zambia not just to make money but also to transfer technology and build infrastructure, Chinese Ambassador to Zambia Li Qiangmin has said.
But Lusaka business consultant Bob Sichinga has charged that China has taken over from the Western countries in ‘raping the country’s’ resources in the name of investment.
Meanwhile, World Bank president Robert Zoellick said the Bretton Woods institute will continue to intervene in Chinese influence on the continent to ensure Africans benefited. Ambassador Qiangmin said China had made great contributions to Zambia’s economic growth.
“Chinese investors are not in the country just to look for money as many people say. They are here to make serious investments that will transfer technology and build infrastructure,” Ambassador Qiangmin said.
“Already, Chinese investment created 25,000 jobs in 2009. We also trained locals in various fields. Even those mines that were closed, some of them have been taken over by Chinese investors. During the global crisis, Zambia had a lot of challenges and many people were losing jobs, but that is the time that many Chinese came and invested and created jobs. That is a great contribution!”
He said more Chinese were willing to invest in agriculture, construction and education.
Ambassador Qiangmin strongly believed that Zambia was among the best investment destinations in Africa.
But Sichinga said the Chinese were in the country because they wanted to annex natural resources to their country.
“Zambia is a country with the bulk of copper and we are well endowed with other natural resources, the Chinese know that,” he said.
“That is why they want to annex our resources to their country. They also want to fund China’s growth which requires a lot of natural resources especially metals that they need for their industries…the Chinese have put their act together, they have seen a loophole in Zambia. In the past, Western countries raped Zambia and Africa for her resources and now its China’s turn. And while all that is happening, we are sitting wide open. How can you have a regime that is open-ended?”
He said the government should reserve some areas for exclusive local investments and to strictly ensure that investors partnered with locals with the latter getting 51 per cent of the shares.
“No economy grows on foreign investments only, and no one can come here just to help, not even the Chinese. No country has ever developed on the basis of another one,” Sichinga said.
“They want money, that’s why they are here. That is why they brought their own bank and a school. We need to find our own formula for development. We should not just think about taking out all the copper from the ground, what about our children and grandchildren? There are also entitled to those resources and they can come and work with that.”
He said Zambia’s laws were implemented selectively when dealing with foreign investors leaving the country open to abuse.
“How laws are applied in this country is discriminatory. Our laws are so weak that even money launderers can easily come and do their dubious deals here,” he said.
“And speaking as former chairperson for the parliamentary committee on labour, the Chinese are very bad employers who disrespect labour laws and get away with it. We need to enforce our national laws if we are to benefit from foreign investments.”
The Zambia Development Agency is targeting to attract about US$1 billion foreign direct investment (FDI) into the country this year according to the agency director general Andrew Chipwende.
Addressing a 50 man team of Japanese investors who recently visited the country, Chipwende said with the business reforms the country was implementing and the economic stability recorded in the last few years, ZDA was confident of recording increased FDI inflows this year.
He said following the FDI trends into Zambia since 2000 and after the bursting of big economies out of the recession that withered FDI inflows last year and part of 2008, the Agency was confident to meet the one billion dollar target this year.
Chipwende said the business reforms the country was pursuing mainly under the Triangle of Hope initiative was putting the country on higher leverage in the region, a situation ZDA aimed to utilise to attract more FDI into Zambia from all over the world.
In the past one year, Zambia has recorded an increase in the number of investors willing to set up camp in the country.
Recently, a group of Indian businessmen toured the country to scout for investment opportunities. Soon after that China also brought its team of explorers and a 50 member team of Japanese investors was recently in the country for the same reason.
There is keen interest in the country that one can not help but to question if there was a ‘scramble for Zambia?’ European Union head of delegation in Zambia Derek Fee is of the view that the country is attracting investors because of the positive growth she has recorded recently.
“Zambia has recorded 6.3 per cent economic growth in 2009 and the same is expected this year,” Fee said in an interview on Friday. “That economic growth is an attraction for people to come and invest here. Foreign Direct Investment (FDI) always follows growth. That is why you won’t see investors rushing to Zimbabwe.”
He gave an example of China as one of the countries that attracted investment through growth.
“When China showed signs of growth, all serious investors rushed there,” he said. “As a result, that country has grown to the level it has reached today. That is exactly what is happening here.”
When the Economics Association of Zambia (EAZ) organised a seminar to show case the country’s investment opportunities last week, commerce minister Felix Mutati told the gathering that Zambia was now second in the region in terms of Direct Foreign Investment.
And Zoellick said there was need to build a balance to ensure that in as much as China was benefiting from its strong presence on the continent, Africa also benefited.
Zoellick last week told journalists from African countries via video conference from Addis Ababa on the sidelines of the Africa Union Conference that the World Bank welcomed Chinese investments on the continent as it provided investment opportunities and also helped the continent to enhance infrastructural development.
He said there was need for Africa and sub-Sahara in particular to ensure that only appropriate Chinese investments were absorbed unlike currently when Sino labourers had flooded the job markets on the continent, depriving locals of employment opportunities.
“We welcome Chinese investments in sub-Sahara because we think it has the potential to build infrastructures, create additional jobs and create some new investments opportunities, especially in the manufacturing sector,” Zoellick said.
“At the same time, we need to work with both Africa and Beijing so that the full benefits of Chinese investments are felt by Africans.”
Zoellick said there was need to increase education levels for Africans so that Chinese labourers do not take over the job markets on the continent.
“To make sure you do that, you need good education, training, primary education, improve the health of your people,” said Zoellick. “You Africa need to improve some higher level of education like higher level of tertiary education…”
Labels: CHINESE, LI QIANGMIN, ROBERT SICHINGA, ZOELLICK
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China, The Post have a close relationship - Ambassador Li
By Chibaula Silwamba
Tue 29 Dec. 2009, 04:00 CAT
CHINA and The Post have a close relationship, Chinese ambassador to Zambia Li Qiangmin has said.
And ambassador Li said Chinese investors have invested more than US $15 million in the agriculture sector in Zambia. In an interview to review Chinese ties with Zambia this year, Ambassador Li appreciated the support that The Post and other media outlets in Zambia were giving his mission.
“We have had very close relationship with the Zambian media, particularly The Post newspaper. I found out in the last few months that our relations and cooperation is good and has improved a lot,” Ambassador Li said.
Ambassador Li urged Zambia to improve infrastructure leading to tourist destinations to woo more tourists to Zambia, which he said was centrally located in Southern Africa.
“You need to improve your transportation and tourist infrastructure. In some places, the hotels are not enough. For example, South Luangwa, from my understanding is one of the best safaris in Africa.
If you have three flights daily and good facilities of hotel and food, I can guarantee you a lot of people would be going there,” Ambassador Li said. “Most people like to fly to Nairobi and Johannesburg because of good direct flights. From geological point of view, Zambia is a fantastic place. It's central of southern region of Africa.
You should be building your capacity to attract more and more international flights to come here. Zambia can be the regional centre for transportation to distribute passengers to all destinations. For example, if you have direct flights from Lusaka to each of your eight neighbouring countries, each of them would take about two hours flight which is very convenient. You have to improve that.”
Ambassador Li said his mission was encouraging more Chinese firms to invest in agriculture in Zambia.
“Last year Chinese investors invested more than US $15 million in the agriculture sector. We are very interested to buy or invest in Serenje farming block. We will also buy small farms in Kitwe, Ndola, Kabwe, Western Province and Lusaka,” Ambassador Li said.
“At the moment there are more than 30 Chinese farms in Zambia. More Zambian people like vegetables from Chinese owned farms.”
He also said some Chinese firms invested in telecommunications by providing services to Zamtel, MTN and Zain.
“We are also looking at the possibility to ask the Chinese government to offer more concession loans to buy mobile hospitals to improve the health care condition for the people particularly the rural people,” Ambassador Li said.
“Zambia and China have very long relationship even before Zambia became independent; we supported Zambia in the freedom fight.
As soon as Zambia became independent China was one of the first countries to recognise Zambia and we established our official diplomatic relationship. We always support each other in international affairs as well as Zambia's economic and social development, particularly in the last year.”
He said in 2008/2009 China and Zambia faced a serious problem of global financial crisis.
“China is one of the strongest supporters for Zambia; this is my understanding because your government asked me to help Zambia in August or September 2008 when the global financial crisis seriously negatively affected Zambia's economic development,” Ambassador Li said.
“Some main companies shut down. As you know, Zambia is a country of many products and largely depends on your mining productions for your GDP. We have good cooperation with the Zambian government. Zambia is still a good place for investment.”
Labels: AMBASSADOR, CHINA, LI QIANGMIN, THE POST
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Zambia: CHINESE Ambassador to Zambia slams opposition politicians
CHINESE Ambassador to Zambia Li Qiangmin has described as denial, ill-motivated, loss of sight and vision for some politicians to attack Chinese investment. Mr Li commended President Banda for his consistent support to the process of ensuring resumption of production at the CLM mine.
Mr Li said it was sad that a ‘unique Zambian politician of rare breed’ could attack China with a claim that the Chinese did not bring any investment when the investment was there for all to see.
Mr Li said it was sad that a ‘unique Zambian politician of rare breed’ could attack China with a claim that the Chinese did not bring any investment when the investment was there for all to see.
He was speaking during the production resumption ceremony at CLM mine in Luanshya yesterday.
He cited the construction of Tazara and the establishment of the Zambia-China economic and trade cooperation zone, the building of the Stadium in Ndola, construction of hospitals, schools and Hydro-power station as some of the investment under the aid of china.
“All those undertakings are not only well received and extensively recognised by all African governments and people on the continent but also applauded by the well travelled Western researchers and credible institutions.
“This politician’s remarks are absolutely baseless and ill motivated or he is just in denial or lost sight and vision which is very dangerous for any politician,” he said.
Mr Li praised the Zambian workers for working side by side with the investors to have the copper mine resuscitated.
He said during the last year’s global recession, Chinese funded companies, with government stakes and shares, forged ahead without reducing investment, laying off of employees and downsizing production.
He said the investment at the Luanshya mine would in two years time reach US$400 million and believed that the commitment of more investment, more recruitment and more output would demonstrate a more dynamic picture.
CLM chief executive officer Luo Xin’geng pledged the company’s commitment in continued investment in the mine.
Mr Luo said in Luanshya yesterday that CLM would put more emphasis on renovations and construction at the mine and the investment would next year increase to US$170 million from the current US$38 million.
Describing the production resumption as a Christmas gift to President Rupiah Banda, Mr Luo said that as production at the mine resumed, development of Mulyashi project was also in full swing.
Mr Luo said his company would strictly abide by the Zambian laws and regulations, respect Zambian culture and rely on Zambian employees to manage Luanshya mine and participate actively in the welfare of the community to benefit the people of Luanshya.
CLM board chairperson Tao Xinghu said the company would adopt new labour service articles and long term employment contracts next year.
Mr Tao said according to the company’s investment plan, the accumulative investment in the next two years would go beyond US$400 million and that CLM would have a production capacity of 60,000 tonnes of Copper after the development of Mulyashi mine.
[Times of Zambia]
Labels: AMBASSADOR, CHINA LUANSHYA MINE, LI QIANGMIN, PF-UPND, SATA
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Li asks Chinese investors not to cut jobs
Written by Fridah Zinyama
Saturday, January 24, 2009 8:48:11 AM
CHINESE Ambassador to Zambia Li Qiangmin has asked Chinese investors not cut any jobs for Zambians while continuing with their expansion projects.
And Standard Chartered Bank Zambia has said the current economic turmoil being experienced worldwide is not going to badly affect the Gross Domestic Product (GDP) growth prospects for Zambia and China.
During the celebration of the Chinese New Year on Thursday, Ambassador Li said Chinese investors should continue with their projects in Zambia in order to mitigate job losses the country was currently experiencing.
Ambassador Li said there had been an increase in the level of Chinese investments into Zambia, a trend which he said was likely to improve overtime.
“As China, we believe that Zambia remains one of the most ideal investment destinations because it’s stable politically and has been making good economic gains,” said Ambassador Li. “Therefore, my government is trying to help Zambia maintain its good economic trends by asking some of the Chinese investors in the country to maintain their investments and not cut any jobs.”
And Standard Chartered Bank Zambia managing director Mizinga Melu said the Bank remained confident that the Zambian and Chinese economies would remain resilient despite the current economic downturn.
“Chinese and Asian companies will continue to invest in African countries like Zambia and we see no reason why the long term trend of deepening mutually beneficial economic relations between Zambia and China will be reversed,” she said.
Melu said despite the global slowdown, the broader China-Africa trade corridor would be the most influential socio-economic development for Africa over the next few years.
“It will give further credence to the revaluation of African and Zambian assets; it will strengthen global perceptions of Africa and Zambia as an international investment destination and it will generate new businesses and jobs and boost associated domestic growth and demand,” said Melu.
Labels: CHINESE, FDI, LI QIANGMIN
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