An Indian company has shown interest in opening up a US$200 million sugar cane plantation in Mazabuka’s Chief Mwanachingwala’S area in Southern province.
Mazabuka Town Clerk, Ekan Chingangu told ZANIS in Mazabuka today that SHREE RENUKA Company of India would also construct a state of art sugar production factory, which might be the biggest in Africa.
Mr. Chingangu said the investor has shown interest to pump in an initial US$200 million in the sugar plantation and production factory.
He indicated that with this kind of investment, Mazabuka town is headed for an economic boom.
Mr. Chingangu, who has just returned from India where he went to sign a memorandum of understanding (MoU) with the investor, said 6,000 permanent jobs would be created as a result of the investment.
He said the investment, which the district has recorded in the last few years, has uplifted lives of ordinary people through job creation and business opportunities, especially for small scale contractors and other business houses.
Mr. Chingangu was accompanied to India by Chief Mwanachingwala and Mazabuka Mayor, Edmund Cheelo.
He said SHREE RENUKA is a largest fuel ethanol company in India, with a 20 per cent market share.
Mr. Chingangu further revealed that the company was a fully integrated player, which is focused on manufacturing and marketing of sugar, power and ethanol and was prominent in India’s international sugar trade.
And Chief Mwanachingwala said land has already been identified for the massive investment project in his chiefdom.
The chief told ZANIS in Mazabuka that all his subjects have endorsed the proposed project, adding that no one would be displaced when the project kicks off.
Chief Mwanachingwala said the multi billion dollar project would help reduce poverty levels in his chiefdom, especially that farmers would be co-opted as sugar cane out growers.
He also commended the investor for pledging in the MoU, to build a high school and hospital for his subjects in the chiefdom.
”This project is not mine but for my subjects, they have suffered for a long time because of lack of job opportunities,” he said.
The traditional ruler also disclosed that he would seek an appointment with President Levy Mwanawasa to brief him about the project in the offing.
He said the project needed government support for it to succeed.
This is good development and need all praise.Coming up with new projects is wonderful and a sign of development,we just hope that the workers won`t be imported from india.
Good development indeed. Indians are closer to Africans ethnologically and anthropologically. I would rather they invest in Zambia than Chinese. No Xenophobia here, by the way.
the chief is not telling the truth. People will displaced, that is the fact. There is no idle land in Mazabuka to give to those investors, someone has to suffer to give way for development
#3, the suffering is worth it. This kind of investment can have a big and positive impact on the economy of the country. However, as these investments are coming up there must be an integrated planning with all authorities concerned. Town planners must be ahead of this investments to avoid creating another Lusaka-Gost city out of Mazabuka. Civil Engineers in the ministry of works must map out where which road and bridge is going to be built and effective underground drainage systems etc.
Indeed it is a good development! May be in future there won’t be any artificial sugar shortages.
Investment in sugar production is not bad. I only hope that this kind of employment is not cane-cutting.
It is only in Zambia where the entire government gets unbelievably excited when someone promises to invest in the country. We even forecast economic booms based on memoranda of understanding. You make them take advantage and dictate terms of investment including tax holidays, come with their own employees etc.
The evidence on the problems that foreign investment can cause is easy to find on the net. The memories of the East Asian crisis are still fresh and we need to take a leaf from there. We know that privatisation and foreign investors have caused economic chaos in Zambia, what has changed?
“Welcome to Mazabuka, the home of Zambia’s sugar”. Someone said it now reads, “welcome to Mazabuka, the sweetest town in the nation.”
This investment is indeed welcome. However, as # 5 has indicated let us start thinking of places where infrastructure will be built. Actually, let us not think of roads, bridges and rail lines, but size-able skyscrapers for upcoming towns like Mazabuka.
Of late, Zambia Sugar plc has been doing well together with the Nickel mine in Mazabuka. What remains is to provide OFFICE space for would-be small-scale investors as a result of all this booming investiment in Mazabuka.
the mwenyes are goin to destroy our country……. what do they know about sugar cane??
I am appealing to every zambian who has visited and read the details of the website’s (below) ‘ACT’ to kindly, pinpoint the part for me where the act specifically deals with incentives for the Zambians abroad wishing to invest in Zambia. I have almost read the act in full but I dont seem to find a chapter dedicated to Zambians. I am thanking you in advance…
(ZDA Act 2006)
…Sorry, LT couldnt allow me to specify the website. However, it for Zambia Privatization Agency. Or zpa dot org dot zm.
Sorry, I 4got 1 thing. On the left side of website, www dot zpa dot org dot zm, click on zda act 2006.INCENTIVES
54. Regulations on incentives
55. Validity period for incentives
56. Qualification for incentives
57. Incentives for machinery or equipment
58. Major Investment
59. No incentives without licence, permit or certificate
60. Certification of investment for tax or duty reliefer exemption
61. Double taxation agreements
62. Bonded factory
63. Licensing of bonded warehouse
…the above are some of the topics you will find on INCENTIVES. Sorry to bother you but thanks.
Binani, Anglo America, Smart Centre, Supreme Furnishers and, well these are the only ones I can remember.
I may be wrong but I a not holding my breath. To be honest I would love to be wrong, but it is easy to get Zambains excited.
Honestly, zambia will never enjoy the benefits of these investments if the government does not partner with these foreign investers. India and China in their initial developmental stages partnered with foreign investers, that is why they are able to move fast in their development. Yet when they come to zambia they do bussiness alone and rip more profits for the development of their contries while we fold our hands watching. That is why up to this time we cant do things on our own, but depend on investers. We cannot even make feeder roads, investers have to do it. Zambia can only develop quickly if GRZ partner with these forein investers in most developmental areas.
How many zambians are living abroad, and have at least $50-$100 change in the account at the end of the month? I would guess at least 2 000 000. I was just thinking, if we can all put in a $50+ and buy the sugar company and let the Government run it as a cooperation. The money earned in exports put in the run-down infrastructures, etc, hospitals and schools. Why not give back to the country that brought us all this far, than selling our country resources to Asian countries.
I ve checked the ZPA Act. Its a total shambles. Who ever designed the site is a minor in the industry. The site is a shame. ZPA makes so much money they are failing to come up with a decent website. Shame on them
SORRY BUT NO INDIANS.
#9 i am a Zambian but i challenge you to visit India and see their sugar plantations. They make Nakambala Sugar Estates a child’s picnic play. Critise with facts not out of underrating. For your information, India’s economy is based on agriculture which includes sugar production.
#9 & #18, I think you are being xenophobic or racist. What is wrong with indians? If they hurt you in the past not all indians are like that. There are many good idian running seriously businesses all over the world. Do your research before using your short-sightedness to just paint every Indian with the same brush.
Let them come but GOVT should control issues such as taxes, employment ratios, town planning etc. After all if they become irrelevant to the nation by exploiting us, we can Xenophobia them out. If they mean well, they will enjoy the Zambian hospitality for as long as Depak has been enjoying.
#17 Why can’t u offer to design ZPA’s site ?, if u can. I ask coz looks u so concerned about the look of the site and offering any help.
Why NOT invest in ur country or persue the ZPA on such matters.I think they would be ready to hear u.Realise that Zedians living abroad do not give a sh1t about thier country, all we do is compare with our host country and critisize and critisize.Thats ur home improve do not demean it.We forget at one time we will all have to go back.WHAT CAN U DO FOR UR COUNTRY!!!!
#22 I’m glad u raise the issue about zedians being critical in relation to their host country. We need to go back to basics use critical path analysis measures rather than just blabbing anyhow. We need to take care in what we say and the tarting point is to hear out what these investors business plan is all about i.e how local economy will benefit, if indeed they build a school and hospital how will these be managed. We live in times were we need to scrutinise each and every investment and what benefits we as zambians can gain from it.
#22 what has the country done for you? Is it a case of saying a website is not important? If it is rubbish it is ubbish and may be number 17 has seen better. I have seen a few Zambain website which were last updated in 2006. Zamnet only gets updated when well the webmaster feels like. Unless one is telling me he does it for free. Why should we be reading about Ben Bamfuchile (MHSRIP) dying on Zamnet quoted from the BBC? Dont just argue.
#24 This country educated me for free. I am appreciative in that matter. If I feel I can help why not offer constructive criticism.Not just rubbishin … NO NO NO. I hope I have answered u.
ZPA is GRZ site, not the money spinners like ZAMNET,well thats not an equal in comparison.Do you feel me now ????.My point is a webiste is important and good website is a useful resource.I’m in IT so I understand its worth very well.If u feel u can help, contact the webmaster, offer advice for free, now that helps.
As a southerner I can only be happy that at last we have investment pouring in this part of the country.Its a good development and hope more will come.Our pipo need jobs, our towns need infrastructure … way to go.
#7 Jack
No one is stopping you from coming up with a sugar plantation. If you want, you can start your own, give the terms and conditions of work, hire the laborers you want. No one is stopping you.
This is the way economics works. It works on supply and demand. The demand of sugar has gone up, prices have risen, more are willing to produce sugar due to the high prices. Thats all it is.
If you want to start your own sugar plantation, go ahead, no one is stopping you otherwise stop this xenophobic attack on foreign business men.
#9 pointer
Same goes for you, if you feel the indians don’t know anything about sugar, start your own sugar plantation, grow it the way you want and maybe you’ll make more profits than them since you know more about sugar than they do. No one is stopping you.
#17. Muntuza
Perhaps you can offer your expertise since you know more about web development than they do. Go to ZPA and tell them how to build up a website and the works and what not since you are so concerned.
Clearly just criticizing on LT is not going to help.
Get up and actually do something. Make a call to them and offer solutions as to how they can improve there website or even email them the codes if you have to. At least you would have done something about it.
Well done to Crazy Zambian
You guys must grow up. You speak of the Zambian economy. What economy, and who owns this economy. I see that some of the misguided Bloggers are busy praising the intended upcoming project when deep down they know that all citizens will only be bystanders and not owners or decision makers. How come we have become this brain washed? Why praise this type of a monister that will gobble our people’s land and water? Please people, think with your brains and not pushed by your empty poverty stricken pockets.
#9 yes I agree with 19, check the indian sugar industry, it would make Zamsugar look like mantombwa, no xeno talk here guys I prefer working with Indians than ma chinese if I have a choice between the two evils. Indians have fear for the law, chinese do not! eh eh eh #31 nichani?
#12 useful information big up to you
I think its a very good idea and investment for zambia but the Indians should not bring in workers from india.the country should make sure that these indians employee Zambians not their fellow indians.
#31. Development specialist
If you don’t trust the Indians so much, why didn’t you come up with the idea of setting up a sugar plantation, better yet, why didn’t you implement it. Some of you guys are busy complaining about foreign investors but if we had to ask you what idea of an investment in the Zambian economy or what you have invested in the Zambian economy the answer would probably be NOTHING.
Someone has already thought of the idea. FACT, sugar is on high demand and the prices have risen, someone is taking advantage of this and has seen they’ll make profit out of sugar. You can also start your own sugar plantation if you wanted. No one is stopping you. And the comment on foreign
cont…
investors and the praise they get. I personally praise them because they have come all the way to Zambia and have thought of a good business to go into in the country, implemented and are making profits out of it. Zambians have probably never thought of this, even if they thought of it they are waiting from someone else to do it for them or waiting for govt to do it for them.
Well we are now in a free market economy and if you feel the country needs a new sugar plantation, don’t wait for govt to do it because it’s no longer govt’s job, get off your butt and do something about it. Start your own sugar plantation, no one will stop you and if you do a good job, you’ll also be praised.
sentence correction: “waiting for someone else to…”
That is why I said eh eh #31 nichani I was taken aback by the crude tackle our “development specialist” applied on this very encouraging topic.
By the way just a way ward question to all. HOW MUCH DO YOU PAY YOUR MAID OR GARDEN BOY? Before we start pointing fingers at innocent investors?
Why not another town? In Western or North Western or where ever you cant have two sugar companies in one town.
#40. Shidada, Windhoek, Namibia
It’s a free market economy. The owner of this investment can set it up wherever he wants and wherever he thinks he can make a profit. This is not charity, this is investment and investors don’t come to give jobs as a charity offering so that one day they might go to heaven or karma doesn’t happen to them or something like that. They come to make PROFIT. And so they will set up there investments in places where they feel they’ll make the most profit. If yo want to set up your sugar plantation in another town or province, go ahead, no one will stop you.
It is now a FREE MARKET ECONOMY, feel free to invest anywhere you feel you’ll make profit (as long as it’s legal).
Zambia is a very good destination for FDI because of of among other reasons a relatively stable political enviroment.Most importantly the locals are not so much into galvanising foreign money which they could easily access that is if they have viable comapies with a track record. For as long as the locals do not do anything about this its gonna be a one way track where locals only benefit from taxes which hadly get to them.Wake up Zambians.You think we come to help you? We also have mouths to feed and dreams to fulfill and what better place to go than your Zambia? Eat your hope and and I my investment!Kalas as they say!
We have Kafue Sugar and Nakambala Sugar estates in basically the same part of Zambia. Why can’t these investors pick on another region say Western province, northwestern or even CB. Let us spread the development to other areas.
Why Mazabuka and not L/stone? Mongu? Chipata etc?
Two sugar companies in one town or region, it will be like CB, one the industry is not doing well, the whole regions suffers or almost die like what happened to Luanshya, u guys on CB know better.
You know Musungu iyo ine TRACK RECORD that is where the problem, starts for me who wants to go into real estate to get a decent house comoplete we are talking somthing not less than 300 million, so how do I galvanise that money? It is quite tricky around here.
Mazabuka area has the best climatic conditions for sugar cane growing, and it has soil type conducive for cane growing, irrigation is another factor. Economic factors include good transport network and nearness to the large market for sugar etc. you cannot take sugarcane growing to kalabo where roads are all flooded during the rain season.
#44. Katongo ( Chingola, Zambia)
#45. Montana
Am not sure on this but am guessing that the infrastructure in Mazabuka is more suitable for a sugar industry than the infrastructure in these other towns. Maybe thats why the investors want it to be in Mazabuka, mostly probably because it’ll be more costly to set up the proper infrastructure in another area than to set up the industry in an area where the infrastructure is in place already.
#46. Shidada, Windhoek, Namibia
Free market economies and capitalist economies don’t work where the govt tries to have a strangle hold on you. You cannot expect in this type of economic system we have set up for govt to go to celtel and tell them to charge this much for there airtime. That is a sort of socialistic type of setup and if you want to see the effects of such policies, you don’t have to go far, just look at Zimbabwe where the govt is twisting businesses arms telling them to charge this much that they have even stopped producing because it’s no longer worth it. Let the investor set up his/her business wherever he/she wants. It’s a free market economy where there should be
cont…
little govt intervention. Like i said, investors are not here for charity, they are here for profit and will set up there business wherever they see profit can be made.
In diversity and strength; where the battle of ideas takes the shape of faulty and insults laden discourse-moral authority and platform are lost. Zambian blogs are victims of such vices. They fail to expand their audience or create meaningful impact on the ground in line with the obtaining democratic and economic momentum because moral authority is lost immediately they open up. What we see are the same traditional insulting patrons I call shifting sand migrating back and forth without realizing a single objective.Its very sad indeed.
On a lighter note, I humbly appeal to you bloggers to put your money where your mouth is & get voting for our young talented Trinah Chisanga.
Show the passion with which you blog daily here & support the next idol.
Have a good one!
#9 U THE CHAP WHO KNOWS NOTHING ABOUT SUGAR, U SOUND SO BITTER with your insults.
Great development with regards to the proposed investment!
.
these mwenyes my freinds are very clever people….. they will make money for themselves….. just look at the indians in lusaka they are enjoying the money by themselves at the expense of the locals. we need to have proper investors who will look after zedians.
Pointer #55
For your information, there will never be an investor who will look after Zedians!!! My brother investors come to Zed to make money not to look after locals!!!!
Its upto Zedians to put right investment conditions so that Zedian population benefit as well
Mwiinga taata,#47,I once lived in Zambia and I know of people who have both the qualifications and the track record but need to be prodded into major investments.Looks like most Zambians are ony interested in small time family entreprises.Think big boys!
Mwiinga#47
Bosses! if you want to invest in Real Estate, you have to approach a financial institution with a financial feasibility study, and get a mortgage bond! you can’t invest the all R300 million in one property which you don’t even have. As Musungu said “Think big boys”
Thanks #58.And the back starts with Chief Mwanachingwala who should have negotiated for a stake in the company on behalf of his people. And rather than ask for a hospital and a school the people of Mwanachingwala would have been able to build schools and hospitals,improve access to water etc. Most imporantly the so called MOU places the people on the periphery real gain.if they had, and I hope they still have chance,they could as owners of land own a stake which would spar their participation in wealth creation for their area. Perhaps the chief and TC know better.But for me its a raw deal and hang me if you like!No wonder we keep coming your way.
#27. I totally agree with you that the law of demand and supply suggests that when there is excess demand, prices will go up and therefore create incentives for producers to increase output in order to make more profits. However, you need to be aware that this law is premised on a number of assumptions, such as holding other things constant (ceteris paribus). This is its weakest attribute as it only considers quantity and price and nothing else. Now, policy makers should not base their macroeconomic decisions on such unrealistic assumptions. Grand issues such as employment, national income, taxation, etc need more careful thinking than the simple law of demand and supply.
#27. I also know that building a sugar plantation means profits for the investor and positive externalities to the nation and particularly to the Mazabuka community. However, this will not come at no cost. Goverment will provide security, roads, health facilities, water, for the investor. This is the reason we think investors should not dictate but simply contribute fairly towards the cost of public goods and services and employment. All over the world the issue of employment is critical because of its direct impact on poverty, crime and standards of living of the people. I am more than happy to have a formal discussion and compare notes. Cheers man!
I am disappointed that the GRZ has not been able to put in place a Town and Country department to ensure that we do not have things and thugs putting up damaging entities in an unplanned manner in our country. The days are long gone when chiefs were experts on all matters affecting the people in their environs. Chiefs were responsible for selling of most of their people into slavery for peanuts and to think that chiefs are still at the forefront of the selling of resources to strangers is a shame. Why did LPM go to university if his management style and practices are this archaic?
LT: Why are you not allowing links for your Bloggers so that they can become better informed? You like shallow debates and misrepresentation of facts? Why are you not respectful of facts and allow the truth to sink into Zambian minds?
I sent links for Bloggers to read for themselves what American think of Vedanta after it put in a push to buy an American Copper company, but these links have not been allowed. What exactly are your principles and agenda? Not all of us failed grade one you understand? We want to have a far better and learned nation with each citizen able to digest facts available on their fingertips.