Foreign Direct Investment is viewed as a major stimulus to economic growth in Africa because of its perceived ability to deal with major obstacles such as shortages of financial resources, technology, and skills. This has made it the center of attention for policy makers in Africa.
The Economic Report on Africa by the United Nations Economic Commission for Africa advocates that FDI is the key to solving Africa’s economic problems. Bodies such as the IMF and the World Bank have suggested that attracting large inflows of FDI would result in economic development. Sub–Saharan African governments including Zambia are very eager to attract this FDI.
Until recently nobody has taken the time to interview the largest pool of Investors-Coprprate USA. Below is an extract from the survey done by Baird’s CMC in partnership with the U.S. Chamber of Commerce. The survey reveals why corporate USA continues to take their money elsewhere rather than Africa, despite the loud drums African policy makers continue to beat about how Africa is ready for FDI.
Extracts
A survey of attitudes toward corporate investment in Africa among leading U.S. corporations was conducted with information gathered between January and November 2008 in a series of closed door interviews with senior officers of 30 American Fortune 100 corporations by senior associates of Baird’s CMC.
Below is a summary of the findings:
FACTS
Africa is the world’s second largest and second most populous continent after Asia, covering 20% of the world’s total land area, and home to 14% of the world’s human population, yet Africa remains the world’s poorest and most underdeveloped continent
Africa has not received its “fair share” of global Foreign Direct Investment (FDI) flows.Since the early 1980s, Foreign Direct Investment (FDI) flows to Africa has been averaging only 2.2% of the global total, while Asia received no less than 17.3% of the total.
Overall, the business case for investing in Africa is less compelling than for its competitors To make itself more attractive for US investment, Africa should:
– Invest in education , health and infrastructure
– Ensure the rule of law and a business-friendly climate for all investing companies
– Show it is serious about attracting foreign investment
– Market itself as aggressively as other regions of the world
– Demonstrate opportunity cost of not investing
USA Inc. is more interested in Africa than before, because the African market appears increasingly attractive, but Africa has tough competition and high hurdles for US investment. Education is at the top of the US corporate wish list for Africa; “educate your people so that we can employ them”
The African countries that hold most interest are South Africa and some countries in the North, like Egypt; there are also some pockets of interest in West Africa, most notably Ghana, Nigeria and to some extent Angola; while some in the South (Botswana and Mozambique) and East (Uganda and Kenya), are also being watched
WHY HAS AFRICA NOT ATTRACTED MORE INTEREST FROM THE U.S BUSINESS COMMUNITY?
Rule of law:The rule of law does not prevail to the degree required to make Africa an attractive investment destination. This applies to corporate, societal, and criminal law
Attraction: While the enormous natural resources are an attraction, Africa does not offer a sufficiently large middle class of consumers or show consistent economic growth that could promise a future market. Most African countries are small and have poor markets, and there are barriers to regional markets such as taxes and the freedom of movement of people and goods
Risks versus rewards :Given the currently perceived risks in Africa, the rewards have to be very high to make it worthwhile to invest. Presently, U.S. corporations say that there are very few visible promises of future returns high enough to justify significant interest in investing
Supportive business framework Transportation and communications infrastructure, trained or trainable human resources, and equitable trade and employment practices are insufficient to support corporate investment
A welcoming environment African countries are not doing a sufficient job of providing education and health services to the potential workforce, which makes the potential hire-able local insufficient to support investment.
U.S. Business Wish List
INSIDER’S VIEW
“Educate your people so that we can employ them.”
To attract FDI, corporate America asks African nations to do several things:
Invest in the health and education of the African people to create a large pool of skilled and productive human resources.
INSIDER’S VIEW
“There need to be investments in education and health so that there’s a growing layer of the population that eventually can afford to buy our products.”
* Invest in and maintain infrastructure — transportation, communications, electricity, and security — so that there will be a reliable society in which to operate.
INSIDER’S VIEW
“Are there investments in infrastructure — roads and hospitals and electricity grids and telecommunication grids?”
* Build a functioning legal system to ensure the rule of law, transparency, and fair play.
INSIDER’S VIEW
“Create environments in which you feel reasonably confident that your intellectual property rights and other legal protections are in place to be able to do business without being blindsided.”
* Create a positive climate for foreign investments by reducing bureaucratic processes, eliminating corruption, and reforming tax systems, irrespective of country of origin.
INSIDER’S VIEW
“Executives need to feel confident that the government is going to honor contracts and not change the rules of the game when we need to proceed with any kind of business transaction.”
* Ensure stable political environments — that may or may not be based on western democratic principles — that work toward the common good of all stakeholders in society
The Full Report can be downloaded the website http://www.usafricainvestment.com/ on this link here
We need to sort out Infrastructure, investment will automatically follow period.
Well this is one of the true report I have seen so far. I have never attacked RB on this forum and am not to attack him now, but I just want to advise him to put his bottom down and focus on educating Zambians and building infrastructure. Investors will come. This business of flying all over the place in his two private jets will not attract investors but just dig a huge hole in our country coffers. Fuels costs a lot of money. Ask Zambian Airways, they went burst because of fule. It is not cheap to fly the way our president has been flying and I hope he reads this report
Other side of the coin? The US are opportunists,unlike the Chinese their investment is made purely on making large profits. Fortunately, Africa more recently has been getting sizeable FDI from china lately. Its all we can do for now, we can only do so much to get them to invest. But lets keep at it.
Do africas leadership have time to analyse such reports evidently No. Whats in it for them to line their bottomless pockets.Like JOYCE says luck of infrasture and stability.Try driving around or flying around within africa . The Cape to Cairo railway link its still where Cecil Rhodes left it somewhat.
Hallow Nana M. youve been looking for Victor Mutelekesha. you can find him on facebook.com
Africa should educate it’d people first then infrastructure .But the problem is that most people who are educated don’t stay in Africa.Most of them are in Europe.Africa has a lot of educated people around the world but don’t like coming back home and develop the mother land.If they came back Africa would change.No one like Africa because of lack of technology,entertainment and poor health care.I’m also scared to go home.I would like2 go home but the way things are run is also the reason.Really it’ll take millions of years to move forward so long educated Africans don’t want to stay in Africa.Asians go back home hence development.If Zambia started looking beautiful with gud technology foreigner will just bring themselves.Who take people 2 Europe?no one the secret is employment and…
For sure, Africa lacks the basics for any meaningful business development like an educated workforce, infrastructure, etc
But the point raised in the bullet below sounds rather conflicting:
* Ensure stable political environments — that may or may not be based on western democratic principles — that work toward the common good of all stakeholders in society.
1. Well, then why do the same guys sponsor NGOs which clearly promote the adherence to western based democratic principles?
2. Why do they decide for us by setting conditions for donor aid or investment if they themselves are truly democratic.
The report gives an insight and sums up important reasons why Africa continues to be a “dark continent.” I do not blame investors for shunning Africa because the ultimate goal of an investment is profiting making. The African environment is still thousands of miles away from attracting real investors because of the tabulated reasons and others. Charity begins at home, and Africa has to earn the trust and confidence of “real” investors by cleaning up our mess. We need to first attract local investors and ensure that they thrive before we can think about attracting serious outsiders.
Well detailed analysis.
Africans destroy Africa. The leaders are so corrupt that they steal money from their poor Govts and deposit it in rich countries.Check the Nagerian military leaders, Charles Tylor, FTJ etc. All the money that is ment to develop Africa end up in the West. The second point is that the West enjoy supporting rebels, and bad leaders in order for them to take away the gold, silver, oil etc from Africa for free.( Mubutu Seseseko, Idi Ami). While you are fighting, they are taking your good stuff away. Look at Angola, they gave them guns to kill themselves, now after 30 years what do they have?The third point is that those who leave Africa don’t “sell” the continent in a positive way. They call Africa “matako land.” If you are not proud of yourself or what you have who wil?
Problem yakwebati tulatendwa bwangu. Attention span twakwata iyakanyelele. At the same time, we are always starting. The take-home message is education. Just a day or two ago I mentioned how that FTJ put aside further study programmes in preference for short two-week training in Manzini or Arusha. We cannot develop like that. Okey kwaliba ba “PONDO” but that should not be the basis of stopping long term programmes. We need a sustained programme targeting technology advancement. And here we are not saying nano, space or any emerging ones. We can start with reverse engineering to cover robotics, materail science and mechatronics so that at least even when we are bringing in turn-key technologies we would have competent people to operate and maintain such technologies.
I wish to indicate as a blogger that I will be off , for some time, as my dad has passed way(died) in Zambia. Enjoy blogging.
#11 Cont’d. To cut down on ba “PONDO”, (by the way ba pondo is everyone who is in the country called Diaspora) GRZ should work out a mechanism of ensuring that whoever goes for training under GRZ sponsorship pays back by way of bonding. The kind of bonding is one to involve the international community such that nangula wapela ifumo umusungu atiwikalilile kwabene ufwile waisabomba for a stipulated period under the bonding. So, we should now concentrate on joint agreements which also a training component for a specific cadre whose movements will have to be monitored in collabo with the host country. It sounds cruel but what is more cruel is ukulya umuchanga wa calo elo wapoola mu diaspora. It is really selfish – nayo chapatwa.
#12 Wiseman Re-born. My condolences.
No. 12 My Condolences
#15 Kwathukummawa. Which part of the WISELAND do come from?
Wiseman, my condolences. Go well, see you here soon when you come back.!!
#12, sorry about the passing of your father. MHSRIP.
Wiseman-reborn,my condolences too you.May the lord give strength in this difficult moment.You contributions on this site is valuable.
Well, black skin african countries are lagging behind in development due to a number of factors. Some of the factors are the following: (1) Electrolates vote for bad leaders (2) there is poor implementation of developmental projects (3) lack of unity among african countries to fight continental problems like wars e.g Somalia (4) lack of proper application of acquired education knowledge by the educated (5) jealous of success and hardwork; africans are generally jealous of hardwork and success
This is for a simple reason that the Investment Premium Risk in African Countries is very high ,discouraging most potential investors from Developed world and opt for safer spots in the developed Countries. Almost all African countries are unsafe investment destinations in terms of Political,Social and economical aspects of investment conditions.The economic returns are higher are higher in Africa than Developed World but the risks are unbearable to make huge investment ventures.It is for the same reason that only 20% of total FDIs goes to Developing countries and 80% to the rest of the world .When would be investors visit Investment centers,the first important thing they are advised to serious consider before taking any serious consultation or study is the rate of investment risks.
My Condolences wiseman-reborn.
Shame wise man…MHSRIP…
Goodmorning bloggers.
#12 wiseman reborn, my condolences, may you and your family find strength and comfort in our Lord.
To the lecture at hand: well, here are the facts as we know them, printed for everyone to see. I hope our leaders have no more excuses for not properly investing the available funds in infrastructure, in order to make developmental operations (health and education) widespread and easier.
Why it is true we lack much needed infrastructure & a growing middle class that has disposable income, we have ourselves to blame. We are still agric driven economies where majority of the products are raw materials. Having said that, I would like to commend a few African countries that have managed to market themselves correctly & have managed to attract the US business interests. An example would be South Africa, Namibia, Angola, Ghana to mention but a few. These countries have taken it upon themselves to market their countries as brand & foreign investor friendly. Instead of Govt wasting money, it could engage constructively with Zambian abroad & set-up business chambers with the sole purpose of selling Zambia & giving a true picture of what we can offer them when they invest.
wiseman-reborn; My condolences. May the Lord give you strength in this period of need.
Much as I agree with most of the above points, the last place the west would ever want to invest and see grow is Africa. Unfortunately our greediness has not helped at all. It`s all about me and myself!
I do not agree with the issue of infrastructure though because these people have invested in worse countries than say Zambia. Any one on here been to Bulgaria, Hungary?
#12 wiseman-reborn my condolences.
I hate this audacity of coming up with whys for Africa? The plain truth is they are not bothered about Africa. If oil was discovered today in Zambia, I tell you these people would not even be talking about infrastructure.
They are in Nigeria where it is very unsafe but they have persited. Why did someone do everything to get into a desert? Wake up Africans.
Wiseman my condelences. May the soul of your father rest in peace.
Enough with the old selfish leaders, we the younger generation need to take over that country??? Imagine those sleepy so called leaders rejecting Operation rights for Emirates Airline, flying Rights to Zambia??? And help bring back the national airline?? The deal has gone to Angola. It is really interesting to see how Zambian leaders miss opportunities and make me wonder if really they have the Interest of developing that Country… Ladies and Gentlemen, we have the responsibility and rights to bring back that country.. Check emirates.com and see how many jobs have been advertised for Angola. Zimbabwe Is bouncing back, we will be finished.
This is a well thought out and convincing report but frankly I do not believe the hypocrisy of these investors. Please let us not froget Africa’s history; before African leaders started to plunder, the western had already plundered our continent starting from human trafficking for cheap labor, to stripping off our resources. These western countries are developed largely due to our land and our hands. Now if really they wanted to do business with Africa, they would have invested in ifrastructures, and ousted regimes like they are now doing in the Middle East. Why? because of the oil. Until they suck their oil dry, Bin Laden will still be in the caves.
Ba 3 RqU:, you may be right, but just like in every business you need a return on your Investment. Africa cannot be receiving all the time; we have a serious problem with Leadership. Let’s face it. Developing countries have sometimes tried, but gee, abuse and misuse of funds. Our Leaders are the most expensive to Look after.. Was in Japan a few weeks back, got shocked that most Ministers use Public transport? It keeps them in touch with reality. No commitment to changing bad habits (corruption) No cash Obama has said…..
Hey Dalitso, Much as the west did wrong; we need to fix our houses. Imagine Zambia, during the time the colonial left the exchange rate to a pound was 1 to 1??? Similar as the Middle East now, dependant on Oil, which they are utilizing their cash properly?? We had Copper as well. We need to change the way we do things. The problem is that we eat before harvesting… we need innovative leaders. By the way Dubai has no Oil, but look at the success story behind it. We need innovative leaders and can also capitalize on Tourism. Problem z old blogs will never give a chance to young guys..
#32DESERT LEADERS I absolutely agree with you. This is reason I said our greediness has not helped in post #27 posted at 10:13hrs (incase LT mess up numbers).
No comments. Too busy enjoying my holidays. Greetings Bloggers.
#33. but who regulates the copper prices? Copper is not even as valuable as it used to be which you already know. Economies evolve. True our leaders are crass, but it will take a million years , or if ever, to catch up with the West. We talk about Africans being ill educated, black America is ill educated, most live in under developed areas, and yet its still America. Now do you really think anyone gives a care about how poor Africa is?
Dear Editor,
It is shameful and emabaraing to recommend Postzambia.com to my friends here in South African because all i read oflate on your ”news” website are statements of hatred and planned divisional comments you get from the opposion leaders in Zambia.
I do not need to be a journalist to conclude that your editorial team is losing it.You have allowed hatred to override your important aspect of news delivery.
We have only one Zambia and your editorial team is seemingly surviving on hatred statements.You hated the late Levy Mwanawasa to the grave and now you hate Rupiah Banda and all his leaders.
Just what kind of a Zambia do you want to have?
Is Rupiah Banda moral record worse than that Jacob Zuma of South Africa?
The people of South Africa respect their president despite…
The real problem for FDI is African leadership, period,
#37 Daaram. Stop reading the post. And, I do not think the post need a south african to read their paper.
Africa was tricked.
#12 Wiseman Re-born. Condolences bululu.
Coming to the subject of FDI, of the 2.2% that goes to Africa, the bulk of that–about 95%–goes to Angola, Nigeria, Egypt and Sudan. The common denominator is the oil in most of these countries. The rest of Africa shares the remaining 5%. Our leaders just bwatabwata without understanding these things.
#32 Desert Leader, even in the UK MPs and ministers use trains and tubes. Oftentimes Gordon Brown uses the train when travelling to some places in the UK. Tony Blair also did and in fact, on his last day as PM, he went back to Count Durham where his constituency was, by train. Nothing extravagant, nothing kulibonesha, nothing anione-anione.
# Ba 3RQ
open yo eyes ba mudala.Catholic Bishop waku Kitwe was a hero when he was a sinking Titanic and now that hes ship has sunk down,hes drownd down the sea.Let us not worship statements of hatred coz fwebaiche will have no future as One Zambia One Nation…Not even Ba Post are perfect,so y shud we seek perfection in RB.Corruption shud be fought whether ni mu Govt or private.I said SA friends wana know abt Zambia and ask for Zed nice news websites….its a global village bamudala.Blog is nt 4abuse if dats wat u think.kuleni mu mutwe
This article offers that platform for Policy makers to rethink their approach in attracting foreighn investment. Yes our population is still illiterate which makes it difficult for investor to invest in technology. Infrastructure is also a major concern in Zambia.
#12 Wiseman Re-born.My condolences.
The report says it all but these Bazungus are the ones who fuel conflicts in Africa.This is hypocrisy on their part.They are feeling the pinch from China,they thought they had monopoly of FDI.
#12 Wiseman Re-born.My condolences.God be with you.Come back with your wisdom.
There is so much to debate and wrong about the points that are raised in this article. Just to cover a view:
” INSIDER’S VIEW
“Educate your people so that we can employ them.”
To attract FDI, corporate America asks African nations to do several things:
Invest in the health and education of the African people to create a large pool of skilled and productive human resources. ”
The first thing the IMF has demanded, were cuts in education spending. There used to be universal education, now thousands of children spill into the street because of the IMF and the neoliberal governments desire to please them, instead of their electorate.
Bring back ‘socialist’ universal education and healthcare.
” INSIDER’S VIEW
“Executives need to feel confident that the government is going to honor contracts and not change the rules of the game when we need to proceed with any kind of business transaction.”
* Ensure stable political environments — that may or may not be based on western democratic principles — that work toward the common good of all stakeholders in society ”
People talk about ‘political capture’ of parastatals, but we should be addressing ‘corporate capture’ of the economy. The fact is that mining companies bribe individual politicians, and when those politicians are voted out, they bribe other politicians. The problem that for instance the Development Agreements are controversial, is because they have no democratic support, they were signed to benefit…
But really we should be asking ourselves: what is attracting FDI all about? And is the attraction of capital ever worth it, when the profits generated are not your profits, but someone else’s profits? I would say no way. It is like borrowing to pay the mortgage for your neighbor’s house. It makes no sense, which is why not a single country developed by attracting FDI (maybe with the exception of rare places like the city states of Singapore and Hong Kong – but certainly not Japan, South Korea, China or Taiwan).
In fact, if you truly examine how Japan and Korea developed, it is by being anti-FDI. No foreign manufacturer has ever been allowed to set up in Japan, most definitely not car manufacturer has ever been allowed to do so.
Keywords: Keiretsu, Chaebol.
The question should not be – how can we make FDI better, it should be, what effective other model is there, to not just develop the economy, but develop it in a way that is actually relevant to ordinary citizens.
Buried deeply in this attachment to FDI I think, is the colonial hangover that if someone is going to develop Zambia, it must be foreigners who will do it.
That truly is the biggest obstacle to development, because it prevents people (especially including politicians) to do get off their behind and ‘do for self’ (to quote Marcus Garvey in the 1920s).
No one ever came to Japan and developed it for the Japanese. However, they sent young people all over the world to find out the latest technology and *bring it back home*. Result: they took on the world’s major super…
What we need is to develop our own internal markets. That means raising incomes to create demand.
The way to do that, is to: start public works projects to both raise incomes and wages; universal education and the foundation for capacity building of the workforce, including a minimum school leaving age; mobilize the workdforce to create works projects to create infrastcture like roads and irrigation projects.
The way to finance that is to both tax the mines to the max (say, 20% of their turnover) and nationalize those mines that do not perform and new mines. Believe it or not, but there are ways to benefit from the world’s largest deposits of copper. 😉
People talk about diversification, but the only way to do that is to use the wealth from the mines to agriculture and manuf.
#12 Wiseman Re-born,
My condolences too. I hope to see you back on the blog soon.
Ba Wiseman reborn , my deep condolences to the whole family. MHSRIEP
12 noted and condolences to all your family.
As for “he Economic Report on Africa by the United Nations Economic Commission for Africa advocates that FDI is the key to solving Africa’s economic problems“, I totally disagree with this view. My take is that entrepreneurship even on small scales is what is key to solving Africa’s problems. We as Africans also need to know that serious trade among ourselves instead of looking to USA and Europe will help us make progress.
For example, Zambia has Copper and we can do well by selling it to South Africa to make Vehicles as opposed to taking our Copper to London Metal Exchange. Also, we need to stop being lazy and start working hard with our own hands. Looking for handouts is not helping us.
___
Prevention is better than…
#54 Rocket Scientist Maestro Hhehhehhehhe, I wonder if we have any copper at all, if it does not belong to Vedanta and other foreign mining companies. As Bro MrK has pointed out, ownership of the means of production is in foreign hands and they are reluctant to pay taxes.
Rocket Scientist Maestro Hhehhehhehhe says:
” My take is that entrepreneurship even on small scales is what is key to solving Africa’s problems. We as Africans also need to know that serious trade among ourselves instead of looking to USA and Europe will help us make progress. ”
This is a huge growth opportunity, but it will take coordination between the government and the people, and a vision by the government that the people have to be enabled in any way imaginable to step up their economic activity. And the government needs to take ownership of the outcome, not just ‘try’. Today, they just run a massive bureaucracy, collect ‘donor aid’ and wait for the Chinese to develop the country. This mindset is incredibly wasteful of both time and the country’s massive…
Kwandangala says:
” As Bro MrK has pointed out, ownership of the means of production is in foreign hands and they are reluctant to pay taxes. ”
In this climate, there is no one who can honestly object with to stiff taxes for the mines. Especially as donor aid dries up.
They’ll threaten ‘oh, we’re going to leave’ – to which I say – so what? We’re not getting anything out of them right now. Their stooges in parliament and the media will protest and try to create as much noise as they can. But the climate has changed. There is no more room for the mines being foreign owned and not performing.
No more free ride for the mines. There is a way to make foreign owned mines pay – tax their turnover. Confiscate every fifth load that leaves the mines, and call it a tax.
No. 16 Kamunyama
Thanks for the interest. I am heir apparent to RB. I come from whence he comes.
56MrK. Cool stuff and I hope some people especially in the REAL EDUCATED opposition are taking note of such comments.
___
Prevention is better than cure.
I have never read such cods wallop in my life! What infrastructure did Cecil Rhodes find in Africa to invest? If Cecil Rhodes was alive today he would have been 10 times richer than the richest man on earth today! Those who have money to invest and have a desire to do so do not give excuses. Rule of law? Tiny Roland of London-Rhodesia (LONRHO) invested even where there was no rule and no law. He danced with dictators and got a good profit. Mobutu’s Zaire had more investment than the fledgling DRC today. Today, most African countries are in the best shape than ever before. Rwandans are at peace! Apartheid is gone! No. They should not give excuses. Let them keep their money and we will do very well without it thank you!
#12 wiseman-reborn
Oh! I am so sorry that bo ndataho ba shwile. I am deeply sorry. My condolences. I only hope that it was not something that could be helped, because if it is, the pain is all the worse. Sorry again my friend.
RB is blamed for jet setting but when you analyse his journeys, they are all within the region. His predecessor was more of a traveller than he is. LPM accumulated more airmiles than RB. Besides, RB is not paying British Airways or South African. So I am happy.
THE SAINT says: ” If Cecil Rhodes was alive today he would have been 10 times richer than the richest man on earth today! ”
It is odd that you would take Cecil Rhodes as an example. He was not ‘an entrepreneur’ in any positive sense, he was a robber baron. He set his eyes on property that was not his, and then promised the loot to people who would help him get has hands on it. That is how he operated. He never paid market value of anything he acquired, and he murdered people (populations) who got in his way.
I hope that today, instead of being the richest man on earth, he would be sharing a cell with his soulmate (or is that soulless mate), Dick Cheney.
” Mobutu’s Zaire had more investment than the fledgling DRC today. ”
Doesn’t that say enough? 🙂
THE SAINT says: ” If Cecil Rhodes was alive today he would have been 10 times richer than the richest man on earth today! ”
It is odd that you would take Cecil Rhodes as an example. He was not ‘an entrepreneur’ in any positive sense, he was a robber baron. He set his eyes on property that was not his, and then promised the loot to people who would help him get has hands on it. That is how he operated. He never paid market value of anything he acquired, and he murdered people (populations) who got in his way.
I hope that today, instead of being the richest man on earth, he would be sharing a cell with his soulmate (or is that soulless mate), Cheney.
Satellite Communications Scientist Maestro Hhehhehhehhe says:
” 56MrK. Cool stuff and I hope some people especially in the REAL EDUCATED opposition are taking note of such comments. ”
Prof. Clive Chirwa wrote an article in The Post, “Zambia’s recovery plan, Part II: the stimulus plan”
I hope that oldfashioned demand side economics will finally draw the leadership of the parties away from neoliberalism and their obsession with FDI. When convenient check out Chaebol on wikipedia /org, the article outlines a lot of interesting models of how the government can finance business, or guarantee foreign loans to industry.
When vultures hover in the air, know there is a dead carcass.
Such is the behaviour of Multinational Corporations. The day something very valuable will be discovered in Zambia, there will be no talk about poor infrastructure, education, health, whatever. Those with FDI will come with vigour, in droves, jostling for the best cut out of the find.
They are keeping a distance now because, there is nothing of high value to pursue.
The only thing that is going on, is that copper is now lower (still from $3000 to $4000 per tonne) than at it’s height ($9000 per tonne), and they think it will go higher again.
This is the effect of putting the economic lifeblood into the hands of those who do not care about the economic life of the country.
Which was one of drivers of the fight against colonialism, by the way. Decisions being made thousands of miles away, without regard for the impact locally.
#63 MrK “It is odd that you would take Cecil Rhodes as an example”
The point I am trying to make is simply to show that there are no obstacles to money making when one puts their mind to it. The BSA Co. came when there was nothing at all. I am not praising Rhodes, I am simply saying ‘dog eats dog’ in capitalism.
#66 Kwathukummawa is right. Laura Bush visited Zambia sometime ago and for a reason. The Americans want to get their hands on Uranium and we will soon see their so called ‘investmen’ coming into the country inspite of the ‘poor infrastructure’ and ‘unskilled labour.’
Cecil Rhodes did more than put his mind to it. He started out as the Governor of the Cape, and basically used firepower and murder to gain immense riches. He was the ultimate practicioner of nchekeleko politics, promising riches that were not his, to anyone who would support his plans. That’s all I’m saying. 🙂
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