The famous motor company, Toyota Japan has committed over US$10 million to carry out an expansion project in Zambia that will include opening up plants in Solwezi and Livingstone in Northwestern and Southern Provinces respectively.
Toyata Japan plans to set up plants in Zambia for value addition, converting copper into cables that will be used for making motor vehicle parts and assembling full Toyota vehicles.
Speaking to ZANIS at the just ended TICAD 1V, in Yokohama, Japan, Commerce Trade and Industry Minister, Felix Mutati disclosed in an interview with ZANIS that the US $ 10 million will go towards renovating the Toyota head office in Lusaka and opening up plants in Solwezi and Livingstone.
“ Toyota is expected to come and conduct some feasibility studies in the next one or two months, but in case they delay, Zambia will continue to prod and push until we see major companies from Japan coming to invest in Zambia,” noted Mr Mutati.
Mr Mutati said it will be easy to market Zambia to Japan and other investors worldwide once Toyota sets up plants in Zambia.
Mr Mutati explained that Zambia will soon reach a Memorandum of Understanding(MoU) with a Japanese company called Jethro to facilitate investment flow from Japan into Zambia.
Mr Mutati added that Jethro, which operates like Zambia Development Agency, (ZDA)will assist in the promotion of investment from the Japanese business community, provide technical assistance to ZDA and also provide technical assistance to producers and exporters so that they penetrate the Japanese market.
The Minister further said apart from Toyota Japan, Zambian government officials also met with Mitsubishi, who have promised to go beyond mining into value addition.
Another Japanese company that has plans of investing in Zambia is the Japan Oil, Gas and Metals National Corporation, JOGMEC, which hopes to assist the Zambian government by providing geological data in Oil and gas explorations for Japanese investors to come into Zambia.
Mr Mutati also disclosed that the Zambian government together with Japan International Cooperation Agency (JICA) is putting up a multi facility zone with the technical assistance from Malaysia in order to attract Japanese investors and other Asian countries.
He said the Zones will create an industrial base for value addition industry and hoped that the feasibility study will be ready by April next year.
During the TICAD 1V, Zambia’s Ministers of Commerce, Trade and Industry, Felix Mutati, Finance Minister Ngandu Magande, Foreign Affairs Minister Kabinga Pande and Agriculture and Cooperatives Minister Sara Sayifwanda attended an investment forum where over 100 Japanese companies attended.
Among the issues discussed at the forum included the investment climate and incentives offered in Zambia, and the Japanese perception of risks in Zambia and Africa as a whole.
Japanese are too risk averse. 10M USD after such a high level economic cooperation conference!Well its a start at least. ZCCM was selling the our copper for ages and they can only think of a copper wire plant this late!
Now Zambia should think of starting our own car making industry conceived by Zambian technicians and engineers something like “Kafue Zambia!” Don’t worry it will make sense later when it becomes a household name.
This is the kind of investment we need…investments establishing new going concerns…NOT that buying in what we’ve already established or what we can effectively do on our own. This is good news indeed. Let’s gunner for more of such injections into our economy.
THE SCRAMBLE FOR AFRICAN RESOURCES CONTINUES.
We keep seeing the Sino-Africa, Euro-Africa, Indo-Africa and now TICAD. Besides rivaling the Sino-Africa economically, No doubt our good old Japanese friends are also after Africa’s support for their permanent seat in the UN Security Council. Like the others, Japan’s international Development office is craftily using any of its corporations & agencies in offering sweeteners to make itself a saucier commercial partner.
#2 Good idea, but the thing called brand loyalty has rendered such ventures marketless in countries like Nigeria and Libya where it’s been tried. Customers are not ready to try out new brands of cars, and would rather stick with what they know. The best option is the South African way, manufacturing known brands under franchise agreements.
Great stuff Toyota. Please, make sure your investment comes with serious plans o helping the Zambia people socially also.
#2 and #5. Those are nice contributions. We do it, only that we need to do it better.
“The sky is the limit.” – Unknown.
I think this is a good investment. At least Japan is investing in the manufacturing field rather than the raw material field.
We just cannot be giving away raw materials for free like that, we need to add value to our raw materials and i commend these Japanese investors for making a risky move like this one, especially in a continent like Africa.
On the side note, now it is govts duty to ensure that the proper conditions are put in place for moves like this. Is the infrastructure updated and ready for this investment in the two locations that have been selected. Are labor laws going to be explained to the coming investors. Has govt set up the proper trade routes for the manufactured cars.
#4 Pragmatist, it would be nice for you to criticise and offer practical century relevant solutions at the same time. your assertion may have some grain of truth in it, but thats just what it is, an assertion. Zed needs people who can identify problems and solve them, and not just make assertions.
Most countries including the super economies of the world like the US, UK and Germany have had their citizenry benefit in terms of affordable but modern cars from such investments from Japan. Obviously, Japan has to profit some where but it’s certainly not in the line to disadvantage Zedians.
And also, what is the Zambian public doing to contribute to economic growth.
As regards Japan, Africa must just push hard for a share in assembly plants using their technology on our soil to add value to our economies.Otherwise, meaningful technology transfer holistically to the continent besides the gains of SA is not feasible on the part of the Japan in the immediate or foreseable future.
SORRY BUT THIS GONNA BE KIND OF LONG.
How can the Zambian public make a contribution to this. Well by setting up Zambian owned Toyota dealerships in Zambia as well as Zambia’s neighbors and nearby countries like Namibia, Botswana, Tanzania, DRC, Zimbabwe (questionable), Angola, Mozambique, Malawi, South Africa, Kenya, etc.
This would work in the ways of Zambians buying the assembled cars from Zambia and selling them in other countries. This would offer some safety that the assembly plant will remain in business and will ensure a trade surplus as well as a strong currency which will benefit us in the way that it’ll be cheaper to import technology which we dont have.
cont…
It’s time to think outside the box. If we cannot assemble our own vehicles, the least we can do is help out the people assembling the vehicles by starting dealerships which will be stocked with Zambian assembled cars in Zambia and the SADC/COMESA region.
Japan has always had Africa’s best interest and we need to encourage such investment. We need to process our raw materials and this is the second step needed to stimulate our employment and increase our export earnings.
#12, Beautiful thinking. We need more people who can conveive a a practical way of nagotiating through the tracks of the modern economic /business cycle. Zed as country has no control over this cycle but can navigate well through it if people plan well. I hope our leaders are that decisive.
in #15
conveive=conceive
All this is just cheap talk. Looks like everybody is cashing in on promises..where do you think you are going to get Electricity for all these industries, you can’t even support just mining. Iron & Steel plants that support car manufacturing requires a lot of Electricity.
LPM & Your bootlickers stop this globe trotting and put the infrastructure in place back home and all these INFESTERS will come. Build roads, railways networks, Broadband Internet Access, Electricity generating Plants(Nuclear),Agro infrastructure, etc even if it means borrowing more from IMF. These things will repay the loans. Stop gettign grants for silly things like poverty alleviation and nobody knows what that means
Viva Japan!!!! lets turn talking into palpable reality. Will wait and see.
they better pay our people well and reduce their prices.
FOOLISHESS AMONG US.
#17 Papa J you see beyond your nose you are a man.I for one can not be cheated.Mwanawasa and all his minsters and all members of pariament can be cheated.Look at this-India to open $200 million sugar plantation.FAO injects $335 million in casava.Japan commites $10 million,Felix mutati discloses that $10 million will go towards renovating the Toyota head office in lusaka and opening up plants in solwezi and livingstone.Do these comparisons make sense?What is behind the deal?Watch out.Now see this-March 13, 2006,Seoul republic of Korea-At the signing celemony Governor Sonny Perdue and KIA president and CEO E.S Chung announced that KIA motor…
Number 17
The Govt should build roads for what exactly. Power stations to supply power to whom? Railway networks to transport what goods? LPM cannot just wake up today and set up wireless internet for people in Shangombo. There is no need. If these people have seen the potential to make money in Zambia, let them. What is the use of having resources if you are not going to use them? The fact is that they are going to provide jobs and maybe this will have a ripple effect and other companies will invest here as well. We can benefit by providing services to these people and moving on from there.
What we should forget is to see Japan transfer her technology to Africa. I still remember how they killed the indigeous Kenyan State Automotive initiative.The offered hundreds of free landcruisers to the corrupt Moi Government a move that choked the market of the new state corporation. Today Britain feels aggrieved with Japan for her loss of the Rover market in sub Sahara Africa. Japan besides her Total Quality Management policy, she has schemed her mass sales strategy very smartly. She needs more sales and more markets than transfering her technology to survive.
To invest is very good but it must make sense to every one concerned.Like this statement,that Toyota Japan to set up plants in Zambia for value addition converting copper into cables that will be used for making motor vehicle parts and assembling full Toyota vehicles.I basically wonder what this means and which spare parts will be made because i understand that coppers chief use is in electrical wiring.
Like Pragmatist and others, at first, I was also sceptical about these major investments going on in Zambia but now I’m beginning to realise the necessity and advantages thereof. Just the other day, I was watching a German documentary called ABRO NORM which lists Zambia alongside Ghana, Nigeria, South Africa and Angola as a booming economy. Let’s not just criticise but encourage our government. Sooner or later, the benefits will trickle down to the small people. I hope.
Whilst I believe its a good idea, ‘value addition’, and whatever comes with it, the government should find ways and means of making sure that ZAMEFA is not strangled in the process.I have always believed that ZAMEFA, under innovative management, can go beyond making just power cables but different electrical and electronic wires as well as panels.It would be a major supplier to the growing economy of Zambia.And most important of all the returns will remain in Zambia unlike Japan.Otherwise ZAMEFA is no match for Japan.Japan,due to its high level of quality and durability of their products has resulted in GM, once largest motor manufacturing, to shut down most of the plants in USA .
World Citizen,
I concur with both you # 25 and Pragmatist # 22.What we are seeing here is nothing but a world that suffocates the local industries in conspiracy with our corrupt so called ministers first, then go back to fill the void as sighted by Pragmatist # 22 on the case of Kenya. MMD should be wake up from her slumber. Japan indeed is an export driven economy that will never transfer her technology meaningfully to Africa. Those plants will be nothing but shells and Japanese imported inventory shades as value chain to their Japanese auto made inventory.
That 10 million dollars is a drop in the wide blue sea.What car component is made from copper besides the wiring ,starter motors alternators. The main frames chassis are not copper neither are the panels so how can the claim be made that the copper is going to be used to manufacture cars can somebody explain that to me.100 million feels closer to the mark to me that 10 million is small change which some people have in their back pockets in the world.
#22 If you have what you can not use reserve it until at the time you are able to fully utilise it and as president you must not look at the people for what they are but for what they can do if fully utilised.A human being even those in shangombo is the most power tool on earth.Again it is a bad idea and always will be to invite every one to your most valued material so as for them to make money out of it.#26 and 27 most appreciated coments.#27 i only fail to support you on #22s part of the coments.If it is possible to make an assembly plant at $10 million let us support the project.But if there is a deal behind the scene which make zambia part away with some thing first then this is useless
$10 million is peanuts to a company like Toyota. People that are involved in these deals must stop converting dollars to Kwacha’s .They need to start looking at the value of the whole project and what value would really be worth.
That is champ change for even individual investors in the western world. They reap us us with our eyes wide open. If 50 Cent is worth over $300 M an individual what is Toyota worth.
#27 YOU ARE A MILLION TIMES RIGHT!!!
I have a question for Anti-investors,
1. When has a Zambian ever thought of having an assembly plant or a car manufacturing company in Zambia.
2. When was the last time a Zambian company made a profit from copper mining.
3. When was the last time a Zambian company has manufactured something using a valuable material besides manufacturing beverages and biscuits.
4. How many Zambians on this blog have started companies in Zambia so as to add growth to the economy.
5. What are Michael Sata’s credentials.
6. Finally, how much do you guys pay your maids and gardeners.
I dont understand where this anti-investor attitude comes from. Yes sometimes the deals are shady but one thing you have to notice is that these investors come from economies which
have very low unemployment rates
a high standard of living
high GDP/GDP per capita. (Japan GDP Per capita: $33100, Zambia GDP Per capita: $900)
Very powerful economies
Advanced economies.
One would ask, shouldn’t we be getting advice from them. Shouldn’t we be asking what we are doing wrong. Shouldn’t we be getting help from them where it is offered. Just my thoughts anyways.
Thanx #26,
I strongly agree that Japan will not export its tec to Zambia but is preying on our business negotiators who do not know the true value of our resources(I say so looking at how earlier trade deals have been handled by our ministers and responsible entities especially mining sector) so that it can be given very very good concessions of operations, maybe for 100 years, to use our valuable copper to manufacture all its electronic products.Mind you Toyota is also involved in various HiTec developments.So if it can find cheap copper in Zambia, then it will go for it and reading the above article looks like our entourage is desperate for this deal hence our vulnerability. $10m is …
Crazy_Zambian # 31,
I see you are confused again. Where do you get that perception that there is a wave of anti investors on the thread? What some of us are advocating for is that its time we started negotiating for investment opportunities from a point of strength than desperation. Our resources are on Global demand; we ought to take them as our competitive advantage. Almost all our raw materials are precious Global commodities.
Sounds good but I am not sure how far $10m will go in doing all that is said will be done. Someone tell me, how much would it cost to set up a plant?
Crazy Zambian, We are not anti investors, infact we would like to see more zambian investors. What we are advocating for is that, the would be investors like Toyata, should be able to invest relatively to the gains they will get.
Do you think a big investor like toyota would take time to invest $10M in Africa? What does that make you think if they process such deals quickly? We have some concealed plans here.
Pragmatist, I love you.
Crazy Zambian, You have no idea how many Zambians would be willing to run big manufaturing companies. But the question is HOW MUCH GOVERNMENT SUPPORT CAN YOU GET?? Ask yourelf that question.
Most of these developed economies are not sustainable without the African supply lines. E.g Japan has nothing but technology which requires our very African resources to survive economically. The revived resource based scramble for Africa is real and my dear brothers. Corporatocracy is a front option not designed to serve mutual interest but predetermined imbalances from negotiations. Its time we started going on the negotiation table with a sense of pride that we have what our partners want to stay in business. Besides that Africa has a population of >850 Million people which provide the market for the finished products made out of our exported raw materials.
we need investment,but the govt should come up with better policies which will protect even the small or medium sized companiesd in .One of my friend had a report which, showed foreign investment in african countries in the region Zambia had the highest….. by far! I can’t remember the exact figures but this tells us two things: one we are too dependent on foreign investment and two, we have very poor policies that its soooo easy for foreigners to come in and set up business with almost no restrictions, we’ve made it too easy!We zambians should also learn to ‘steal’ knowledge from these pipo, work with them and actually see how they do stuff and improve on it and make it our own!
Zambians are not isolationist by nature.Besides that many have adjusted from the commandist to a free market economy here to stay. They appreciate the selflessness of HE and the administration but will not misplace their dissenting leadership in the best interest of the nation. In the absence of constructive dissent, complacency grips in. Thus we cordially welcome investors both local and foreign but the expectation is for authentic & tangible mutual gain out of these undertakings.
Crazy_Zambian # 31
I will tell you some thing about “Theory of Relative Deprivation” which Zambia should avoid now than later.I wish i could explain it graphically on this thread. But any one who has foot in it knows its danger.Its not the absolute condition of poverty in a country that causes people risk up in some undesirable social outbursts, but rather the subjective response to those conditions. Lasting solutions must be the endless of leaders who should foster timely solutions beyond which you don’t want to hear it all.
I want you to do an intensive research on “Theory of Relative Deprivation” and why we should avoid its fruits.
#38 & 39 Both great comments.
What the governnment needs is people that have good negotiation skills. Whilst the Government has ended up with some decent deals, they have definately fallen short of many deals they have allocated and still.
We need people that really understand that Business is Business. And we need these investors to bring significant figures to the table. You don’t bring a 10M deal and renovate a buiding and set up a plant. Someone asked in the earlier blogs what king of plant you would set up.
In my last line, it should read ” What kind of plant would you set up”
In reality of our predicament, we have the challenge of gaining big from all deals. We can’t just afford to come out as losers any more. So far we are struggling to come out of the “Least Developed” economy category we slipped into under the 10 wasted Chiluba years, Lord forgive him. Allow me to hint on this fundamental concern, there are three categories: “Least Developed, Developed, and Most “Least Developed countries”. We are making tremendous progress we could be Developed. But the transition to the other category comes with aspirations. Trouble is when perpetually expectations are not met.
we need to venture into deals and agreements with the goal of earning and benefiting as much as we can.We should’nt enter agreements simply because there are a few benefits here and there, we should be past that stage at this point.the resources we are providing most of these countries actually need,but we look at it as if they r doin us a favor..they most certainly are not..I’ve lived with these asians and one thing for sure they are ruthless and they never do anything out of kindness but its purely business we should approch the matter in the same manner
Fellow Bloggers lets not be hyper-excited by 10m FDI from Japan. We are being penny wise but a Pound (sterling) foolish. Chaps with no business sense and morals have just mortgaged the country for a whooping 1bn USD in cassava experiments. Check LT FAO Injects 335m usd in cassava. Italy 750mUSD Total 1BN USD. Are we going contract such huge debts for frivolous experiments. Are some people earning commissions &contracts. What do we gain by getting 10m USD FDI and Contracting 1Bn debt for cassava experime? I have a lot a worrie about the scientists, engineers,agronomists etc running our institutions. Most are just technical grunts with no business sense at all. If they do then they are corrupt
Right on #47. Tell them what $10 M is. I bet some individuals in Zambia have that kind of money. And for Toyota to come and say they will invest $10m, You are kidding me!!
I wonder if the Government has a limit for investment by Corporations. I know the US has approximately a million dollar investment for independent business owners.
And some people are excited about this kind of investment by Toyota. If I were the Minister of Finance I would ask hem them to take their 10M. Accepting that just shows how desperate we are. There’s got to be someone taking a commission.
Pragmatist ,what is your profession? You seem to enjoy writing may be you should try writing a book.
Crazy Zambian , you strike me like a politician, a little bit crazy though so your name fits you just fine
Zambian Ministers never cease to amaze me, How can Mutati be lied to that 10 million dollars will do all those projects Toyota is saying? Renovating Toyota Zambia in Lusaka can cost 10 million dollars alone. so if Toyota is saying that opening plants in Livinstone and Solwezi will be done with same money i think it is a whole lot of bull and it just shows you what sort of investment the desperate Japanese are trying to take to Zambia. Mutati wake up dont sell the country cheap
Firstly, someone said,”Rome was not built in one day.” Anyone who understands business must know that the basics are that you atart small and then see to it that you expand. And so, I strongly think that Toyota has its plans right. Toyota South Africa has done very well and so I see no reason why we should denounce its well meant move. Toyota can not just shift its whole to Zambia. Therefore, its efforts to do something for the Zambian people must be appreciated.
The Japenese have surely been our great partners in development. Most of their projects in Zambian have been far much better than any other. Thus, looking at this history we can have some degree of confidence in their plans.
On the otherhand, we can only move forward nicely if we appreaciate our engineers, scientists and economists.
Without this group in the forefront, Zambia will continue lagging behind and possibly always moving backwards.
To this end, I will continue asking our GRZ to take UNZA, CBU and other universities very seriously. Education, and meaningful education, is the only key to our success as Zambia.
The only thing is that our education must be tailored to uplift our people’s lives as opposed to mere passing through school and then using only less than 1% of what we learn.
Toyota’s venture is not new. We had Mitsubishi assembling cars in Chingola, and we also had Layland assembling trucks in Ndola. We had FIAT being assembled in Livingstone. All these went down due to poor policy changes and leaders that were kelptomaniacs.
On cable manufacturing, We should have put in place a proper quality management at ZAMEFA to do a new product study and venture into what Toyota and other car makers need for their vehicles instead of selling off the firm. The problem is that we have had and still have leaders who are totally unfit to be called leaders. There has never been anything wrong with state ownership of business when then vast majority of the citizens are ..
unequipped technologically, educationally, and have no capital to embark on substantial business activities such as large scale mining, motor vehicle parts manufacturing, electricity tranformer manufacturing, etc.
As far as I am concerned we have too many lazy people sprinkled with ignorance in the corridors of power in Lusaka.
#55. Someone on one of the threads on here made mention that probably it could be nice if ome on the bloggers were in GRZ while those in government now should have been in the auditorium. This lateral thinking made me think twice!
I was then lead to write on that same topic that we probably need an American Senate system whioch must be composed of people with rare skill and understanding to make recommendations to the GRZ which our doubtful parliament will have had already deliberated upon and made suggestions.
However, let us work towards changing this lazy adn ignorant attitude towards work as you have highlighted.
i have alot of such stories. always when our president attends such meetings it is the same story. where is the cell phone company malayasia promised? india was promised many things but nothing was come from them. i have lost hope from such meetings.
#34. Pragmatist
Ok, tell me what is wrong with this investment. If Japan REALLY was after our resources, it would have invested in mining. But it is saying, it wants to turn the copper ore into wires and pipes and whatever, using these wires, it’ll manufacture car parts and then assemble vehicles, all done in ZAMBIA. So what is wrong with this investment. Is it the money???
Well it has set up the budget, im sure it knows what it’s doing by coming up with such a figure.
Investors are not here for charity, they are here for profit. It’s simple.
#37. Winner
They are many Zambians who have started there own manufacturing firms, the question is, what field have these manufacturing firms gone in.
Lets take mining for an example, Zambians can make a contribution to mining by starting companies that deal in safety gear (helmets, boots, etc), flashlights, air conditioning, catering, transport companies, etc. You have started your own company that enables the smooth running of mining.
Then after the ore has been mined, companies that process the ore, companies that turn it into stuff like pipes, wires, etc.
From there, Zambians can start companies that deal in retail and distribution, i.e, taking the finished goods and selling them
to consumers. Simple commerce table.
RAW MATERIAL —> SEMI FINISHED GOODS —> FINISHED GOODS —> CONSUMPTION
PRODUCER —> WHOLESALER —> RETAILER —> CONSUMER
The question is, why haven’t Zambians done any of these things. Why haven’t they finished the model. If govt cannot find people to do these things within the locals, might as well bring in people who can. Just some time back, govt was urging Zambians to add value to the copper, nothing has been done. The Japanese offer to add value to the copper, Zambians cry foul.
#41. Pragmatist
Here is the thing, Zambia got it’s independence in 1964. At that time, all Zambia was doing was mining the stuff and shipping it to Europe. No one added value to the stuff, it was just mined, smelted and shipped.
Zambia has had 40 YEARS to add value to the stuff and nothing. 40 YEARS and you are still mining, smelting and shipping. No one has thought of adding value to the stuff. Here comes some Japanese investors saying, “let us add value to your stuff, so you can ship products with value” and Zambia says, “no, we want to keep mining and shipping”. Pitiful really.
Correct me if I’m wrong but isn’t ZAMEFA in private hands now? I remember trying to buy stuff from them and I had a lot of problems because everything they sold was pre-ordered. MMD are desparate to show a ‘booming’ economy so even little investment is over hyped to get people into thinking that we are experiencing some economic boom. I had an experience with Japanese people, they don’t trust Africans at all. Nigerians have done so much scum against them that they find it hard to trust any Africans, I think that is why we see little investment coming from them. Ideally though, Zambians should be the number one investors. I know a Zambian that is worth at least USD$ 250 million!!
Also Pragmatist, explain to me how we are giving resources to Japan when
1. The wires will be manufactured in Zambia
2. The parts will be manufactured in Zambia
3. The cars will be assembled in Zambia
If they where really after copper, they would have gone to DRC which has got more copper reserves than Zambia or they would have ventured in mining.
Crazy Zambian,
“4. How many Zambians on this blog have started companies in Zambia so as to add growth to the economy”.
I don’t know about the others, but I have recently created a few companies that are adding growth to the Zambian economy. Just out of interest, what’s your contribution crazy Zambian?
Again another TOO good a deal to be believed.$10M is enough to renovate their offices, and not anything more, Mr Mutati.I must give GRZ a pat on their back, they have tried marketing our poor country.Let start positive, if we can add value to our main export “copper” that will be a good start.I guess we have to start somewhere and this is it.Another point, we must embrace GRZ for creating very positive investor sentiment about the country.Zed is on the move, I hope one day that economy will be able to absorb all of us in the diaspora, one day.
#64. Anonymous
Im in the process of starting a distribution firm that will distribute Zambian produced products to other SADC countries. Im mostly waiting for the situation in Zim to settle and the situation in SA has greatly disturbed my interest in the whole thing.
The thing is still on paper, it’ll be implemented soon.
#65. Miyoba
A Chinese firm, Twapalwa Industrial Corporation has hailed Zambia’s investment policies and has expressed interest in setting up an earth moving equipment assembly plant in Kitwe.
Company business director, Li Ying Chun said the firm has also been attracted by increased activities in the mining, agriculture and other sectors of the economy.
Mr Ying Chun said the Zambian economy was on course hence the plans by his company to set up the assembly plant.
n an interview from Kitwe Mr Ying Chun said the more than US$4 million investment would create at least 100 jobs.
“We plan to set up an earth moving equipment assembly plant because our company is impressed with the Zambian Government’s investment policies,” Mr Ying Chun said.
He noted that the Zambian market had a lot of potential.
Twapalwa Industrial Corporation also deals in road construction machinery.
Mr Ying Chun said although the company was new in Zambia, it would strive to gain confidence in critical sectors such as mining, agriculture and road construction.
He said that the equipment which the company would be producing was designed to suit conditions in Africa.
source: times of Zambia
comment:
You guys are complaining about $10 million when another company is investing $4 million in what can be deemed a similar project.
First of all you talk as if Zambia has got market for vehicles when only 5% of Zambian own cars. Who said it is going to be some big plants that manufacture GOD knows how many cars.
Get all the info first.
#69
Thanks for helping understand that it is possible.An assembly plany for $10M, $4M for an earth moving assembly plant.Maybe lets just wait and see.This might even invlove less machinery and more manual labor = more employed.And $335M for crushing and packaging cassava.
“The Food and Agriculture Organisation (FAO)has pumped about US$335 million into the Technical Cooperation Project aimed at promoting cassava production in Central and Luapula Provinces of Zambia.”
Great economies of scale …. I assume.
Why not first punish Rupiah Banda for running down NAMBOARD before venturing into such things as getting hooked into FAO which we all know has no teeth to sustain its operations following the policy shift from real world needs to an agenda championed by the privateers?
#69 Careful with some of these newspaper reports. Heavy earth moving equipment is big business. Small dump trucks that you see in quarries like Chilanga, kagem cost betwen 350-500 thousand dollars each. Those monsters at Nchanga are in MILLIONS of USD a piece. 4 million USD is probably the price of one electric/diesel shovel. Those chinese are probably talking about assembling two wheeled hand held tractos.
Nothing wrong with assembling affordable tractors. But the investment must be put in its right context.
The cheapest way to access raw materials for highly industrialised countries such as Japan is to have access to the local currency of the Producing country, in this case Zambia. You can not blame them. With high market Prices of Platinum on the World market,it is convenient for them to have some business ventures in Zambia. Platinum is produced by very few countries and is highly useful in todays technologies. Any how, thats part of the reason Developed countries at present can not do without poor but resource rich countries like Zambia.
What do they mean “value addition” plants? My God guys have we forgotten we used to manufacture and assemble FIAT, Peugeout, LandRover, Mitsubishi, Isuzu in this country, my God we are really desperate!!!
People let’s take some time to congratulate that Kenyan man, Barack Obama for securing the democratic nomination. I’m sure when he wins the USA Presidency, Africa will benefit greatly. I hope we will see more american investors doing business with Africa. I think Obama’s victory will give people a different view of Africa and Africans and black people in general.
Development, achievement, progress, economic growth name it whatever you may will not necessarily come from outsiders though we need them. They need us too- mutual.Econimic development in its basic form emanates from the desire to live a dignified life or the fear of the lack of it.Governments role is to provide a condusive environment for every indivudual’s right to ownership.
#53 Good point about appreciating our engineers, scientists and economist.Some finesse is require in polishing these professionals for the REAL WORLD. Not every doctor makes a good surgeon just as not every MBA graduate makes a good manager. I am afraid most of our social scientists, natural/applied scientists, engineers even economist and accountants are mere “technical grunts” without a holistic understanding of enterprise. Or even the astuteness of running govt or non profit organisations. That why GRZ ends up contracting 1 Billion USD debt for cassava. Some international salesmen have seen and exploited the loopholes and the cycle continues.
Individuals and countries that continually survive on begging will remain slaves to the giver and that by choice.
These Japanese should not exite us with peanuts..$10m. Toyota has invested billions US Dolas in RSA. I therefore find it insulting to our intellect as Zambians. To start with Toyota suppliers 70% brand new vehicle to GRZ. Read any GRZ newspapers and you will see. This $10m is therefore meant to cater for maintenannce facility for all these GRZ vehicles. If Toyota are serious about investing in Zambia, we demand a 1 Billion US dollars in new assembly plant in Zambia in Kabwe or livingstone or Ndola.
South africa is the largest producer of Platinum and has a number of high value resources. S.A’s Stock exchange is amongst the top in the world and thus easy and ‘condusive’ for international business transactions . It is therefore not surprising that they have that amount of investment there. There business there is not to donate, it is to make money.
Sorry- Their business there….
Im predicting a boom by 2040..first comes the smoke, then comes the fire..Good stuff.
Why do we need japan to open such a plant???…surely a zambian should open such plant and sell the finished product to Japan thereby making serious forex for the country???..Comments???
#3-where have you been? Missed your postings man!!!
If we Zambians do not create and actuate dignity in our lives, no one from outside will come and do it for us. No one will risk his enterprise or his very life in a country where for instance proper and efficient health care is lacking.
….ala we Zambians are good at talking ang writing, but when it comes to implementation…ala bwafya! But one thing is for sure, Business Negotiation skills lack amongst our GRZ leaders. its mostly short sighted….
Ultimately it is to japan’s advantage to set up business ventures in Zambia. Equal partnership is out of question as the status in which we are is that of a begger and a giver. But we still have something to gain and that is the lesson of being beaten on the head once again.We will eventually get there, the sooner we realise how much they need our resources. As soon as Politicians realise and safeguard the individual’s right to ownership and a better life. When Politicians see the folly of hoarding wealth in a few individuals whilst forgetting to provide for the masses in the nation.
Providing security, a conducive environment for job creation and social welfare must and is the primary goal of Government.
To make Governance easier GRZ needs to realise that employment levels need to be raised. The more people in formal employment and formal business, the greater the tax base and lighter the burden of service deliverly. We will only attract proper investment if we begin investing ourselves. If we create dignified lives and environment for ourselves, dignified investments will surely pour in.We have plenty of land, water and mineral resources. Agriculture is the best area to direct our resources in. The Government should deliberately encourage land ownership by its citizens. I dont think much has been done in this area. For instance, in and around Lusaka not much land for farming can be obtained
Cont’d directly from Government.
What kind of car assembly or manufacturing plant can be built of $10m? This appears to be a joke. May be its a mistake it should read $100m as someone said.
All the japanese are interested in …is our copper? zambia shall be producing the copper parts they need for their overseas factories? if you want a cheap source of copper …come to zambia? our resources are for sale to the highest bidder? and yet our own country folks do not benefit from the copper? our fortune seekers (politicians) are the sole beneficiries. wake up people…?
Economically speaking, any venture is undertaken by looking at both the short term and long term results.short term -supernormal profits and get the hell out of there.that’s what we have seen most inFestors do in zambia, long term well why should Zambia’s welfare be more important to the Japanese than their own?so the profits are externalised, workers are paid slave wages and the plundering of Africa’s resources continue, different name, same OLD OLD story. Arn’t we just pitiful?
number 94? you are right…it is the same old story that has been written differently. it is a shame?
Number 88? the problem is that we do have a government? we only have fortune seekers that do not care about the welfare of its people? To them leadership is about rewards and entitlements? and not service? we are still a long way? we need to introduce leadership courses in high school? as that way our future leader would have an idea of what is expected from true leadership? not driving SUVs and amassing wealth at the expense of the poor masses? who is the greatest leader? one that has scarificed the most -servant leadership theory. Sacrifice in deed and the chiluba way. our people have scarificed enough, it is now the politician’s turn? cut your hefty peaks, cut your incentives?
we cannot be scarificing people’s lives for the sake of maintaining LPM ‘s slush fund at state house or shakafuswa’s cell phone bills? Our Mp’s do not deserve the hefty car loans and incentives? we need to ensure that our government workers are paid decent wages? we should set a limit on how much our fortunes seekers should earn? we should they decide on what others earn..poor civil servants?
Copper-rich Zambia has seen its stock market rise some 25 percent, again outperforming the more established sub-Saharan frontier equity markets in Nigeria and Kenya which have moved sideways or lower so far this year.
“It is the smaller economies that are showing the growth,” said Ayo Salami, chief investment officer of the $30 million Duet Victoire Africa Index fund, which tracks African equity markets outside South Africa.
Standard Bank’s head of emerging markets, Alia Yousuf, says she would ideally like to put most of her new sub-Saharan corporate debt fund in these second-tier markets rather than more overcrowded Nigeria or Kenya.
Still fundraising, the fund aims to reach some $300 million.
“My top picks would be Ghana and Zambia,” she said.
“There is a lot of interest in foreign investment there. The problem is the depth of the market. If you can find a corporate there that wants to expand then it makes sense but otherwise it can be difficult to find someone to lend money to.”
Zambian commerce and trade minister Felix Mutati told Reuters he expected foreign direct investment to double in 2008 to $3 billion, with funding from China diluted by investments from India, Malaysia, South Africa, Nigeria and Kenya.
Nor was it is dominated by money going into the country’s key copper-mining sector, instead being spread across a range of sectors from banking to agriculture, sugar, cement production and mobile phone manufacture.
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Source: africa . reuters . com / business / news / usnBAN451360 . html
Comment: Stop this anti investor stuff. Find ways you can also benefit. You don’t have to depend on govt all the time. Govts change and if you hope one day they’ll be a Jesus who is gonna lead you out of poverty you are sadly mistaking. All govts are corrupt. Even the USA govt is corrupted by giant cooperations.
Here is how you can benefit as well. In cases of mining, start companies that can be supplying mines. Also, start companies that can add value to the mines. In the case of this Toyota deal, start Toyota dealerships in Zambia as well as other SADC/COMESA countries. You would have secured a trade surplus and also helped the plants stay in business. You can also start companies
supplying paint to the assembly plants and since they’ll also be making parts, you can also start shops selling Zambian made car parts (e.g Autoworld) instead of importing car parts from S.A and Japan itself or importing cheap knock-outs. You can also start make a deal to be supplying tires to the assembly plants since importing from Dunlop in S.A can mean building the SA economy instead of the ZED economy.
My point is, THINK BIG. Figure out how you can make it a win-win situation because even though you cry to govt, nothing will change. You have the capacity to make something big out of this little investment. Think outside the box for once.
sentence correction: add value to the minerals mined.
word correction: remove the word “start” in the sentence “You can also start make a deal to be supplying…”
Crazy_Zambian,
You spend 96% of your life time in a day shuffling grade seven level incoherences here.Do you ever consider going for some night classes to improve on your blogging career?
this good news but if they invest in zed we be just for adding value to the copper like zamefa in luanshya or maybe making copper electronic parts and spare parts for the cars ,that definitely will need more than 10mds.the other point I have noted with interest are the places chosen nwp solwezi the nearest large market will be drc and also has a port but people are still fighting,maybe the fact that transportation of copper will be cheaper as compared to transportation of whatever devices the company will make.the second livingstone I think will be ok as in the past has had such kind of infrastructure before and not only that it is center point offering three waters .the best is kapiri m