COMMENT - Minister Chikwanda: "As Patriotic Front we believe a rich Zambia with enhanced purchasing power for most Zambians is the only efficacy and rationale for foreign investors. Pervasive poverty is not a recipe for Economic growth. On the contrary, poverty militates against meaningful foreign investment because it severely limits market penetration. " It's not 'workers of the world unite', but at least it is as big step up from the MMD, who didn't care about how many poor people there were. However, I still feel there are remnants of the 'trickle down' mentality. What we need is a pro-active approach to taxing the mines and reinvesting those taxes into infrastructure projects and economic diversification into agriculture and manufacturing.
Finance Minister Alexander Chikwanda’s message to the private sector
TIME PUBLISHED - Saturday, July 28, 2012, 4:16 pm
Finance Minster Alexander Chikanda met with China Non-Ferrous Metals Corporation and their collaborators where during the week where he addressed a number of economic and administration issues of the Patriotic Front (PF) Government. Among issues addressed wereprivate sector reliability, use of the dollars, workers welfare and listing of Government parastals on the Stock Exchange.
Below is the Full Speech reproduced
==================================================================
REMARKS BY Mr. ALEXANDER B. CHIKWANDA, MP – MINISTER OF FINANCE – THURSDAY, 26 JULY, 2012
The function this afternoon offers an opportunity for interaction between the private sector and Government. I am sure we have all noticed for both reasons of curiosity and interest a significant presence of people from China Non-Ferrous Metals Corporation and their collaborators. I will come to that in a while.
Firstly, let me emphatically state that the Patriotic Front Government regards the Private Sector as partners in our country’s development endeavors. Partnership has norms and moral imperatives. Partners are duty bound to consult each other, a process that of necessity fosters trust and confidence and not least avoidance of taking each other for a ride.
Partnership has norms and moral imperatives. Partners are duty bound to consult each other, a process that of necessity fosters trust and confidence and not least avoidance of taking each other for a ride.
I sincerely hope that I am not being unnecessarily uncharitable if i assert that the private sector actors in Zambia have a long way to build a track record of unassailable reliability. We in the Patriotic Front think that through frequent interaction and exchanges we can optimise mutual trust which will ultimately anchor common objectives, fellowship and harmonisation of perceptions and interests.
The Patriotic Front (PF) administration’s thrust is inclusiveness and consensus, if and when possible we want to avoid a proliferation of regulation. We are not regulation zealots and we only seek recourse to regulation as a very last resort and principally to preempt abuse. For example we recently through SI 33 decreed that all domestic transactions be effected solely using the country’s legal tender, the Kwacha. This is indeed the practice in all countries except In countries shrouded in some abnormality.
The Patriotic Front (PF) administration’s thrust is inclusiveness and consensus, if and when possible we want to avoid a proliferation of regulation.
As government our inclination is to act with restraint, aware that the government has unmatched leverage because it controls the instruments of the state. The state is not only the summation of institutions in some specific geographical space: it has exclusivity in terms of monopoly of legitimate use of force within its geographical boundaries.
That is why any state controls all instruments of coercion also euphemistically known as security forces. That is why government does not panic when some citizens with misguided and misplaced agenda are very vocal. Some of our people act at the behest of or are trojan horses for some dubious foreign interests.
We will listen to a diversity of views even hostile ones. At the end of the day, primacy will always be assigned to the safeguarding of the interests of the Zambian people in totality.
Now, let me talk about China Non-Ferrous metals corporation. We want to congratulate and commend you for listing on the prestigious Hong Kong stock exchange in a way which highlighted Zambia and significantly dispelled doubts about our country as a credible Investment destination.
The initial public offer of $300 million for projects in Zambia was an important achievement more so that the listing represented the first African asset on the Hong Kong Stock Exchange. It is gratifying to learn that more significant resources will be raised on the same stock Exchange for investment in Zambia. This will entail creation of thousands of jobs, an urgent and compelling need for our country.
We hope, and expect China Non-Ferrous will be in the fore front of the corporate social Responsibility particularly as that relates to improved welfare of the workforce, that way you will help reinforce the agenda of the Patriotic Front.
Our primary duty and irrevocable mandate is to be custodians of the interests of our people. This means we cannot watch with indifference the rights and dignity of our people being brutalised. Equally the Zambian workers are enjoined to embrace responsibility and develop a sense of duty to their country.
This means we cannot watch with indifference the rights and dignity of our people being brutalised. Equally the Zambian workers are enjoined to embrace responsibility and develop a sense of duty to their country.
We make a passionate plea to China Non-Ferrous Metals Corporation to list on the Lusaka Stock Exchange. In fact, we wish to appeal to all companies of meaningful size to list on the Lusaka stock exchange (LuSE). For government owned companies popularly known as Parastatals, Government will require all of them to list to enhance capitalisation and to afford Zambians a chance to own stock. This is an essential step in the country’s development process.
Listing on foreign stock exchanges by companies operating in Zambia highlights our country. I am not exaggerating when I say the listing by Zambeef on the London Stock Exchange has had more impact than what our mission in the United Kingdom has done to promote Zambia.
The listing in Hong Kong by China Non-Ferrous provides useful information to other would-be Investors. It is a huge quantum leap and Government wishes China Non-Ferrous all the best of luck.
We look forward to widening the frontiers of our partnership. This applies to all companies operating in Zambia. The Patriotic Front (PF) agenda is premised on a conducive investment climate for both local and foreign investors. That era of the absentee landlords Who provided an enabling environment for foreigners and a crippling one for locals is gone.
As Patriotic Front we believe a rich Zambia with enhanced purchasing power for most Zambians is the only efficacy and rationale for foreign investors. Pervasive poverty is not a recipe for Economic growth. On the contrary, poverty militates against meaningful foreign investment because it severely limits market penetration.
I THANK YOU.
Labels: ALEXANDER CHIKWANDA, NON-FERROUS METAL CORPORATION AFRICA, POVERTY
Read more...
Sata invites Chinese to explore investment opportunities
By Staff Reporters
Thu 15 Mar. 2012, 12:59 CAT
President Michael Sata has invited Chinese investors to explore various areas of investment in the country. This was during a closed-door meeting at State House yesterday, when he met a 14- member delegation from Beijing led by Luo Tao, the General Manager of China Non-ferrous Metal Mining Company (CNMC) group.
During the meeting, Luo assured President Sata who was flanked by Republican Vice-President Dr Guy Scott, that CNMC was confident of its investment in Zambia because President Sata commands a strong and ambitious team. He said CNMC plans to accelerate its investment in Zambia.
"The US$400 million Mulyashi mining project in Luanshya will commence production by the end of this month. And our next project is the US$800 million South East Ore body at Chambishi mines. This is the plan of our projects in the near future," Luo said.
Luo described President Sata as a kind man who is focused on job creation and economic development of the country.
"Employment and economic development of Zambia is also a responsibility of Chinese investors here. I promise that we will adhere to Zambian laws and do what we are required to do," he said.
In response, President Sata recognised the important role Chinese investment was playing in the country.
"The investment has benefitted both Zambia and China. Therefore, every expansion in investment should be for the mutual benefit of the two countries and its people," the President said.
"I would encourage you to bring more Chinese investors to invest in various areas of investment in the country especially mineral exploration. We would also like you to get involved in agriculture, textile and many other sectors."
Labels: CNMC, GUY SCOTT, MICHAEL SATA, NON-FERROUS METAL CORPORATION AFRICA
Read more...
China’s NFCA will take over 85% shareholding of LCM – Rupiah
Written by Mutuna Chanda and Zumani Katasefa in Luanshya
Saturday, May 09, 2009 4:17:25 PM
PRESIDENT Rupiah Banda has announced that China's Non-Ferrous Metals Corporation Africa (NFCA) will take over 85 per cent shareholding in Luanshya Copper Mines (LCM).
And President Banda has attacked Roan Patriotic Front (PF) member of parliament Chishimba Kambwili, describing him as a scrap metal dealer.
But Kambwili has charged that President Banda's corruption will follow him to his grave for selling Luanshya mine through a corrupt method.
Addressing a public rally at Kafubu Stadium in Luanshya yesterday, President Banda said the mine would resume operations at the end of this month when NFCA would take over the majority stake previously held by Enya Holdings.
He explained that a technical committee that selected NFCA would immediately engage the Chinese-run firm in negotiations up to May 22 in readiness for the takeover of the mine on May 30.
The taking over of LCM by NFCA ends the four-month long and anxious wait by the 1,719 miners who were laid off on January 22 this year when the mine was placed under care and maintenance.
"It is now with great pleasure that I announce the sale of the 85 per cent shares of the owners of Luanshya Copper Mines, Enya, to China Non-Ferrous Metals Mining commonly known as NFCA," President Banda announced. "NFCA was chosen over two other bidders, Luanshya Mineral Resources and Vedanta. A bid received from a Luanshya-based company, Exco Management Limited was for the non-core assets of Luanshya. At the conclusion of negotiations with NFCA, a decision will be taken as to whether the sale of non-core assets should be conducted."
President Banda said NFCA would immediately prepare to re-open Baluba Mine and return its pre-closure production levels as well as undertake the development of Muliashi Mine to produce 30,000 metric tonnes of copper cathodes.
"China Non-Ferrous Metal Mining will run the Luanshya Mine Hospital, the trust school and the sports and recreational facilities," President Banda said. "China Non-Ferrous Metal Mining is determined to recapitalise the operations of the mine, turn the mine into one of the most competitive operations in the region. They will support those local enterprises that are capable of supplying material, equipment and services, assist in setting up and implementing local business development plans and provide expert advice and long-term trading business."
President Banda said the Muliashi project would create more jobs for citizens.
He said NFCA had indicated to government that it did not intend to lay off workers and that it would increase its investment and improve the productive efficiencies of Luanshya Mine.
"I want to assure you that this investor knows and understand the business of mining. This investor is not in Zambia just to make quick money and get out at the first sign of stress in the business," he said.
President Banda complained that the global economic downturn had hurt the entire country.
"I want you to know that the drop in metal prices has hit us all hard in Zambia," he complained. "While our people here in Luanshya may be without food, your government has also been robbed of revenues in the form of taxes. But in these trying moments, we have been encouraged by the resilience and commitment of a number of our investors and our partners in this business."
President Banda praised investors who had not cut jobs or reduced mining activities such as Chibuluma, NFCA and Kansanshi mines.
He also urged investors such as Konkola Copper Mines (KCM) and NFCA to create more jobs.
He praised the people of Luanshya for their patience and for not resorting to trouble, which could have scared away investors.
And President Banda took time to discredit Kambwili and branded him a scrap metal dealer who was posing in mining gear to portray as though he was working hard when LCM was under care and maintenance.
"I am also aware that some of the opposition political parties, in particular the Patriotic Front, were bent on conveying messages of anarchy and violence. These people were working to undermine the efforts that your government was making by running commentaries in the press," he said. You may wish to know that these same people were calling me to tell me that the investors that had put the mine under care and maintenance wanted to come back and that government should consider them despite the manner in which they dumped you. I asked them that 'you want these investors to come back but you were in the forefront that they should go, what have they given you to ask that they should come back?'"
But Kambwili charged that President Banda sold the Luanshya mine through a corrupt method.
He described President Banda as a foolish leader for spending much of his time talking about him at the rally.
Kambwili said the sale of the mine to NFCA would bring Luanshya to an end.
"The mine has been given to the Chinese under corrupt methods. Rupiah's corruption will follow him to the grave," said Kambwili in an interview yesterday.
Kambwili said he knew that NFCA would be given the mine.
"I knew that a long time, the Chinese went to Standard Chartered Bank to borrow money to buy the mine. And I got information from State House that the Chinese were going there for discussions regarding the mine," he said. "Rupiah is the worst corrupt person I have ever seen."
Kambwili wondered why President Banda was telling the people of Luanshya that he had called him [President] that the mine should be given back to LCM.
"Corrupt people always want to find faults in straightforward people," he said.
Kambwili said President Banda just showed how foolish he was by spending much of his time talking about him at a rally at the expense of important issues affecting the people of Luanshya.
He said the Mineworkers Union of Zambia (MUZ) and National Union for Miners and Allied Workers (NUMAW) were compromised by the government and that they ended up supporting the sale of the mine to the Chinese.
"He has felt my weight, this confirms that I am a factor. Why is he is scared of me?" he asked. "I am glad that he has felt my weight, and I fought my fight successfully but the only thing I have failed is to change Banda over the investor to buy the mine. Each time he goes to bed, he feels my weight."
He said President Banda had succumbed to his pressure to ensure that the new investor takes over the running of the Luanshya Trust School, the Luanshya hospital and sports facilities, issues that were discussed during the district indaba that was called to look at what the future investor needed to do.
Kambwili complained that MMD cadres harassed him when he went to the directors' lodge where President Banda earlier held a closed door meeting with LCM officials.
Kambwili said the cadres asked him to leave the lodge because he had been insulting the government.
"The whole arrangement to harass me was made by Rupiah Banda himself, because he spent much of his time talking about me at the rally. That is why I am saying he is foolish," he said.
Kambwili, who was at the lodge to meet President Banda, was not given audience and some MMD officials were heard castigating the party's security wing for letting Kambwili enter the premises.
Meanwhile, Luanshya residents jeered Copperbelt MMD chairman Joseph Chilambwe when he attempted to criticize Kambwili for referring to labour deputy minister Simon Kachimba as the only dull Luvale he had ever met at a recent PF rally in Kitwe.
Chilambwe cut short his statement when he was about to allude to Kambwili, forcing him to end by his speech by calling for unity.
This was during the rally that President Banda addressed later.
Mines minister Maxwell Mwale warned investors who did not understand mining to leave it to those who understood it.
Mwale said NFCA had committed US$400 million for the development of the mine in Luanshya.
Mwale said there was no justification for companies such as Mopani Copper Mines (MCM) to continue laying off workers at the current copper prices of over US$4,500 per tonne.
Labour minister Austin Liato complained that MCM had not informed his office prior to the latest job layoffs at the company.
Liato said the labour ministry had no record of Mopani's intention and that he was only informed via a telephone call by a mine official after the news had already hit the press.
Liato said government had asked the investors to communicate with his office whenever there was a significant number of jobs to be lost.
Labels: CHINESE, FDI, LCM, NFC, NON-FERROUS METAL CORPORATION AFRICA, PARASTATALS
Read more...
