Wednesday, April 24, 2024

Job Creation in Zambia—What the Government should do

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By Wesley Ngwenya

The new old government or is it the old new government has a lot of challenges along its path. Or rather the new President of Zambia and his cabinet have a huge task in alleviating poverty in this country. It got me to think after my earlier article about Zambians in Diaspora–Why not do government a favor and come up with a few ideas on how they can create employment for the Zambians from Luwingu to Livingstone or from Lundazi to Lukulu?

Not too long ago, I remember mentioning to my friend at Barclays that perhaps 75 percent of the cars driven in Zambia are Japanese. He was quick to correct me and suggested that it was probably 95 percent. 75 or 95 percent that is a lot of Japanese second hand vehicles rolling our streets. Often times, we have to buy these vehicles direct from Japan at expensive prices not to mention the duty tax at the border.

So what can government do to help? If I were government I would sit down make a proposal and jump on the plane head to Osaka or Tokyo to meet the corporate CEOs of Toyota, Honda, Mitsubishi, Isuzu, Mazda, etc. I would propose and remind them that most vehicles driven in Africa are Japanese. Africans have a taste for Japanese vehicles which fair very well in African conditions. As Zambian government we would like to give you an opportunity to open a Toyota Plant in Zambia. This plant will manufacture, assemble cars and distribute them all over the continent considering the strategic geographical location of Zambia (making sure I have a map to show Zambia and the surrounding neighbors who are equally big Toyota buyers).

Following this, I would then highlight the benefits of Toyota establishing a plant in Zambia:

1. Toyota will significantly reduce its administrative costs. Zambian employees will be paid much less than our Japanese counterparts.
2. Toyota will not have to import raw materials such as copper because they are in the backyard.
3. Toyota will increase revenue because Africans can now purchase new cars instead of the used ones.
4. Toyota will increase the profit margin since the overhead costs will be much lower—a great way to stay competitive with this global financial crisis looming.
5. Toyota will create jobs, have an opportunity to participate in local initiatives—good corporate social responsibility.
6. Toyota will receive tax incentives for a specified period provided the workforce is 90 percent Zambian and the company buys materials from Zambian suppliers.

Imagine 60,000 new jobs in Katete with setting up a new Toyota Plant. I am not sure there are even that many people in the town. Suddenly, we’ll all pack our bags and head east. All those mechanics, electricians, engineers, and architects will now have something to smile about. The residents of Katete will now be able to feed their families three meals a day. Finally, they would now afford to buy their own sugar, thank goodness.

It’s very possible, that within five years of the Plant here in Zambia, a lot of other secondary industry would mushroom as a result. There would be a surge in insurance, banks, hotels, restaurants, retail shops, small scale suppliers, garages and other related industries. We do not even have guess how many other new jobs would be created as a result. We will suddenly, see the copper transporters headed east instead of south. And the best part—we all get to buy and drive little new corollas with zero mileage for less than 3,000 dollars. Wow!

Does that sound like a dream to many Zambians? Probably. With planning and the right leaders, is it something feasible? Certainly. Government has to brainstorm and come up with creative ways of creating employment for its citizens. When many Zambians are working it means more taxes are paid. When more taxes are paid it means more money for the government (not to confuse this with politicians) to implement developmental projects. Does that sound like rocket science to our government? Who knows?

249 COMMENTS

  1. Its not so much the Japanease openning a plant here and bring 1000 oher chinease to work as engineers and emply a few hundredcasual Zambians andpay them peanuts… Lets encourage more of local investment and should we invite foreigners, we will need to have pre-set conditions such as the folowing:

    1. 40 % Shareholding by an indigenous Zambian
    2. Special preferance gievn to Zambian professionals for jobs
    3. Contribution to commuinty projects such as football, clinics and youth groups
    4. Scholerships for Zambian stidents tostudy engineering in Japan.

    Lets put Zambia first!

  2. How can the govetrnment create jobs when other poeple are being declared redundant? Zambins wake up and fight for your country, dont just listen to lies by the government.

  3. It’s not so much the Japanese opening a plant here and bringing 1000 other Chinese to work as engineers and employ a few hundred Zambians as casual workers and pay them peanuts… Let’s encourage more of local investment and should we invite foreigners, we will need to have pre-set conditions such as the following:

    1. 40 % Shareholding by an indigenous Zambian
    2. Special preference given to Zambian professionals for jobs
    3. Contribution to community projects such as football, clinics and youth groups
    4. Scholarships for Zambian students to study engineering in Japan.

    Let’s put Zambia first!

  4. very simpe logic !!manufacturing in zambia is non starter yet we have all resources : minerals,wood etc this is coz there is no strategic direction by gov’nt

    for now,the feasible solution is agriculture..! lets have irrigation schems in all provinces e.g rice plantation in western province can be commercialised into viable agric giant and pipo can manage food on table.FORGET ABOUT WHITE COLOUR JOBS.GET AN OVERALL ,A HOLE AND TILL THE LAND FOR FOOD.!!

  5. this is why the public shud be given a chance to voice such ideas I dont think it would be a bad start especially putting that 90% of workers should be zambians. Its ok to work with foreigners but it should benefits Zambians as well i think the idea would be a good one for job creation. I know we say we should create self employment but this self employment is not feasible for everyone, especially the unskilled in the rural areas and we also need to decentralise lusaka. If the government cud have more younger clear headed people we wud be going somewhere not all these old madalas simply waiting to retire and get their benefits!

  6. regardin admin oheads – Why should we be paid less than what they pay their employees in Japan.
    Thats the only part I dont like about ur proposal, and the fact that I doubt production costs and related logistics may be favourable.

  7. the problem is when you have self made economist like wesley and they think very narrowly then you will never prosper.the only way that ideal can be archieved is when SADCC SATES UNITE TO SET UP A PLANT FOR VEHICLES WITH EVERY COUNTRY TAKING PART WITH MAKING COMPONENTS REQUIRED FOR MANUFACTURING AND MAKE EVERY SADCC MEMBER STATES TO BUY VEHICLES FROM THERE.MY POINT IS THAT ZAMBIANS MIGHT BUY ALOT OF USED VEHICLES BUT THATS WHAT THEY CAN AFFORD.BRAND NEW CARS COST 6 TIMES MORE THAN THE COST OF RECONDITIONED CARS.
    TO COME BACK TO JOB CREATION,THE ONLY JOBS GOVERMENT NEEDS TO LOOK INTO DEVELOPING IS AGRICULTURE, ADELIBERATE POLICY TO GIVE TITLED LAND TO THE VILLAGERS,CONTINUED

  8. hmmm! well articulated article. Try selling the idea to Teta, am sure he will definitely do something about it since his mouth is never shut!

  9. Come on u sleeping zed gov’nt ! use the fiscal policy to stimulate and direct development for economic growth. this does not need any miracle at all.alot of money is spent on talking show meetings,workshops,planning etc just to show off pipo’s academic knowledge.

    we want results,out put,solutions,long term sustainbility measures etc.

  10. IF EVERY VILLAGER WAS ASKED TO PAY K500,000 PER 5HA OF LAND,THEN THE GOEVRMENT WILL HAVE GIVEN WAY FOR RURAL DEVELOPMENT COZ THAT VILLAGER LIVING ON A 5HA TITLED LAND WILL HAVE THE COLLATERAL FOR LOANS,THE WILL TO DEVELOP,HOPE FOR A BETTER TOMORROW AND A STRONG CONVICTION THAT GRZ IS INDEED TRYING TO EMPOWER THEM.CHILUBA SOLD HOUSES AT GIVE AWAY PRICE’S AND MOST OF THEM FOR LESS THAN 5% OF THERE VALUE,IM SURE TODAY IF THE GRZ SOLD 5HA OF LAND FOR HALF A MILLION KWACHA IT WOULD BE JUSTIFIED AND WE NEED TO DO AWAY WITH TRADITIONAL LAND TOO

  11. Wesley Ngenya, a question. What good does this blooging do? Is someone reading these and putting them to use? I mean like informing / tipping of some people with influence. Like this Nigeria investment story has someone raised the concern in the papers? Or is this blooging just meant to entertain us the bloggers?

  12. the young professions from zambia we need to be proactive, this is just a concept. nomba implemenation eyaluma. Alot of young Zambian are running cooperate business and NGO etc and I dont think they can fail to run the government with is run by old ballies in Zambia, Bakandile bafula. Young lets rise like the eagle and bring change to Zambia.

  13. Just starting building infrastructure and cleaning our dirty cities. That would create enough jobs for all these PF cadres roaming the streets and increase ZRA tax base. They call it public works program and even the US intends to use a similar move next year. Why can’t Zambia do the same. For once dig copper out of ground and use it to build your country

  14. Abena Wezi nizi.That’s a well researched piece of writing.We are tired of driving pieces of scrap metal on wheels pa Zed.In your own words, it’s sad that your brilliant idea is only but a dream in Zambia.

  15. Some more crap on the blog. Zambia has not the support industries needed to manufacture cars. Toyota has a presence in the region through Toyoya RSA and their cars are expensive so much that South Africans do envy the quality of used cars based on the price and condition they are in. Zambia on the other hand needs to improve the roads and railway network, power supply and reliability, communication network, water supply and reliability. So its not just cause we have copper and that the end, we need leaders who have vision to develop zambia and not just themselves through better pay only for themselves. Good suggestion but far off the mark, Ngwenya my brother.

  16. Toyata will not make unnecessary investments! Why should they invest in Zambia when they already have there investments firmly footed in Regional powerhouse S.A. As good as the article may seem to be, it is simply too shallow to tackle the hurdles of attracting investment from serious investors. This not to demean the effort made. Find out what happended to Rover Zambia, TATA and ALL those asembling plants that Zambia was once adorned with then ask again.

    Our pupulation and potential market is too small for serious returns for the likes of Toyota. However, the potential that Zambia has for being a regional access point is one that can not be underestimated and one that such companies

  17. I get surprise that some poeple still have hope in this current government. Poeple dont be cheated, it will take a miracle for someone to grow this economy because people in power dont think about Zambia but their own benefits.The situation in Zambia is terrible and it seems other peiole wants to pretend that they dont know what is happening.

  18. I think the point is not just to concentrate on TOYOTA it’s also to get people thinking and talking about ideas,u will have a ran of not so good ideas b4 u get a good one. The fact is govt needs to be more creative and stop being so literal in the way they implement Villagers don’t even need to buy land, those interested in purchasing land should be given it freely and legally unless they dont develop it government can then re posses the land, there is more than enough land in zed in fact in the northern and luapula provinces with all that water there there could be agriculture all year round its just a matter of developing means of proper water distribution

  19. Toyota has a firm and clever dealership arrangement with southafrican investors with poilcy assistance from S.A Government. These reconditioned cars are not even allowed in Southafrica. They are not persay ‘Toyota’ but imitations and are simply dumped here in Zambia. Yes ‘Toyota original’ are expensive cars to buy cash and most people in S.A, Namibia, Botswana will rarely buy these vehicles cash. Even the wealthest individuals and companies will prefer buying through credit facillities with the banks. The banks in these countries and insurance firms offer the guanrantees of purchase.

  20. A great article!
    Man,I love your thinking. To those who say we must only concentrate on agriculture, I would say we must ALSO concentrate on agricuture.
    Agriculture will put food on the table for now, for the farmers. We have to buy the food from them. Where do we get the money. Should we all go back to farming. Ummmm that sounds like 1820 AD. Precolonial Zed. Sorry this is 2008. Not everyone will be able to go back to farming. Point is, a nation cannot be built only on farmiing. Whats presented above is ONE of the things that can be done.BRAVO!
    Japan was built that way.WE NEED SUCH AN INVESTMENT pa Zed.We can rise above the current situation.
    LT, I hope the movers,GRZ read the article

  21. The article is very useful. The other important things GRZ always misses. GEZ could have made electricity cost low. Companies always go to places with low production costs and we have in abandance. You as GRZ then get your monay through taxes and secondly your people get employeed. Take advantage of your few strength (Our hydro thing is the least exipensive but why is electricity so expensive). Also appreciate the local guys in business. They are not croocks like GRZ and so simply creating a good atmosphere will motivate them?????????

  22. The best and easiest way of creating employment is literally creating a conducive environment. The bulk of our people are not credit worthy which is a big problem. The best to undo this is to add value to ‘ownership’ If a guy in Kalingalinga can use his shackle to get a loan or any such finance arrangement, you will have empowered him. But his shack is not formalised and has no value and therefore worthless to offer guarantee for payment.I have explained the whole scenario in the other threads to cut the crap.

  23. #24 and 29 Anonymous
    Your analysis is brilliant not those shallow ideas without depth which people flaunt around to sound or appear knowlegeable.
    I admire your thought proccess. You think through and have depth.
    LETS HEAR MORE

  24. Haha,this is a wonderful article. If this could work out we can have a Zambia which is like heaven.But unfortunately this cant work out with these leaders we have. Only Sata,can implement such great ideas.And bring real investments to Zed.Not these people.forget it! These are leaders with jammed minds,about 298 people wil loose their jobs in the mines.These leaders are completely stuck like a baobab tree,they cant offer a solution to this!

  25. The problem is when the Government is corrupt, everything in seen with the lense of corruption. Dont also keep grages, you as GRZ you have to work with people with different views. OP should not be used to bring down people. That thing OP should work to explore our ineterest in the region and world at large. Why use something to fight the same people with briliant ideas. You even kill them just for having different ideas. Getting loans will never solve your problems. So I know you are going to deslike me for this. But this is the fact

  26. I agree with Umwina kalale, that Zambia does not have the support industries to venture into the manufacturing of cars at this stage. What Zambia needs is to invest in the development of its infrastructure the road network, rail, power etc. which would create a good base for both local and international investors to invest in places like Katete, Lukulu, Shangombo.

  27. There are a lot of INKOTIS(ABAKOTE) in gvt departments and ministries who cheated on their nrcs, shileleniko abanabenu, retire.

  28. Countries develop because people put aside personal interets and believe in their country. Whether one is democrat or republican. You work together. You enemy is other forces outside you country, not your brother or sister??. We do work for big companies out here, but really feel like Zambia should just remain with its problems because the people in charge of that country are sel-fish. They are proud and they cant even involve us even without a cost. Look, GRZ educated us but the people who run GRZ feel they know it all. Is this right???

  29. Before we go off shore begging for jobs to be created for us, we have to mobilise our human and material resources and solve our problems in our back yard.We do have the human and materials but lack the will power.The job we want can seen in the picture shown in this article..’Gabbage on our streets.’When I was growing up we used to have gabbage collectors going round the streets emptying bins and cholera was a strange word for me.

    So yes Gabbage collectors would be value for tax payers money and our land rates than salary increaments for MPs who just sit at the paliament building eating GRZ food and doing nothing for our people.

  30. Another pie in the sky but great for discussing over a Mosi!!! Why would Toyota come and set up here for a tiny market share that barely has a disposable income. Things as they are now work great for Toyota – their consumers in Asia with significantly larger disposable incomes can buy the fleet of brand new cars and dump the older ones in Africa. Say a 3-4 year cycle…work perfectly well for Toyota. 75-95% yes but of what years!!!

  31. 34 AND 35
    Your reasoning in is too shallow dont politise the issue. For a moment assume that political conditions were ideal, then look at the economic environment and attending factors which can lead to this project succeding or not to succeding.

  32. Zambia has everything it takes. It is only the people who run this thing that are a problem. Mostly it is because they are defending their positions. I think things could have started going bad just when Kaunda allowed irresponsible people to run GRZ. Things like Mama Region and the like. Giving plots anyhow ……
    The solution is simple, just be open and involve people with insight and it will work for you. We love our country, but what can you do if there people who always think they are correct even when things are going wrong….

  33. Job Creation in Zambia – What the Govt Should Do.

    Simple answer:

    1) Identify capable Zambian investors both at home and away.
    2) Give them investment incentives similar to those lavished on ba mwisa.

    Of course the labour laws will also need to be revised to stop the abuse of workers by their employers.

  34. The article is good and conceptual,it just needs consolidation and more cohesive ideas to add on.Anonymous,you sound negative.The Zambia of yester year and today is differently different.The one thing i would suggest is that,the infrastucture that was left by rover zambia and them can be proposed,this will make the investment cheaper as the engineering drawings would just need a bit of modifications.Remembering,in setting up plants like these,the biggest cost centre would be generation of engineering drawings.Forget about toyota SA,we’ve got the figures at our borders to show the number of toyotas coming into Zambia,those numbers obviously translate into money,which should be used to lure.

  35. #7/4 i agree with you you, this is a good artical but we need to put Zambia first, we ask for conditions that will benefit us as a nation is the contract

  36. The cheap and substandard living condition perpetuate poverty. A guy owning a ramshackle in Mandevu unconsciously is aware that his property has no value and his lifestyle follows that instinct. Redevelopment of our citeis and towns is as crucial as can be. Business thrives in planned settlement. Nigeria is one example of a huge unplanned gheto. With all the population and revenue from OIL nothing can undo the poverty levels except with revisiting standards.

    Fortunately, our Population is not that much and we are capable of regaining a ‘dignified and conducive’ lifestyle potentially.

  37. Do you remember that Kaunda and Chiluba were never wrong and they would not at anytime admit to wrong doing??????????

    We are at the same spot again. Why cant a minister (just one) say OK guys here the oposition is correct and lets seek more ideas on how to go about. This is better other than always saying the GRZ knows what is doing and is trying to address the issue (nonsense). If your ideas have always been correct, why are we in a messy???

  38. The Rural Reconstruction concept under KK was a great idea if only it would have been properly implemented. The Govt should find money to fund small scale farming enterprises and support them through establishment of proper marketing channels. As an example picture the following: To set up a small scale cooking oil refinery producing about 1 tonne refined oil per day requires about ZMK150m. if the Govt can help set one individual set up such, it will trigger the following:

  39. to lure prospective investors.In my view,the article just gives toyota as an example,any motor manufacturing plant would suffice in creating jobs.Chinese cars are already penetrating the SA market.Zambians,lets not be fond of shooting down ideas.The best is to brainstorm and curve around all the foreseen glitches around a particular project.Slowly,an solid concept begins to form shape and it’s amazing how finally such turns into some economic tangible.Change,we can believe in,these are ideas we can believe in and create change that we wanna see.

  40. Number 41. you are really otu of your mind. How can you say we assume that the political enviroment was iddeal. Dont youknow that it is politics that determines the whole thing.

  41. How many jobs will be created simply by initially spending such a small amount of money as K150m and if such investment can be reproduced in all the districts in Zambia shall we need Toyota or indeed any other foreign giant to come to Zambia? We can do it on our own. Of course will need to trade by buying equipment but the goodness is that we will employ so many technicians and engineer. I rest my case.

  42. #43 and 44

    The issue with investors is not unilatteral decisions. You dont just decide ‘O.K I will get TOYOTA to come to Zambia’ That is the huge problem with a lot of Zambians. Just like those who say preference should be given to ‘local investors’ The fact on the ground is that by default local investors are the first preference, but and this is a big but, there are simply not local investors with the necessarry CAPITAL otherwise where are they. Local investors are not there and neither is it a question of window shopping to woo Credible investors. That is the fundamental problem with PF stand points.

  43. #41,chi Golyati ikala fye zi.We are not politicising issues here.All we are saying is that the government should serve its people,even when things are critical.But these are selfish leaders they dont care.what matters to them are heft salaries. Goliat we shall send you Congo DR to help the rebel leader NKunda.Wila panga fye ichongo apa,shaa!

  44. #21 Baby C. U must be a real fan of Manchester Utd! I’ve watched a game at Old Trafford, east end. It was a rare priviledge to see this great team in action. Are u living with your family there or u are just a studying?

  45. Wesley, you forget easily. You are an editor of Lusaka Times and yet you have such a short memory. Maybe you need to look at some of your old stories.

    I remember sometime back. Right here on Lusaka times, there was a story that Toyota wanted to invest in Zambia. They said they would refurbish their office in Lusaka, assemble cars and manufacture car parts right here in Zambia.

    I also remember 90% of Zambians in the blog where against Japanese investment. As usual Zambians are anti-investor. By then I was using the username “Crazy_Zambian” and I was arguing with them as to why the Japanese investment is important.

    Just throwing that our there. [tbc

  46. Toyota sold 8000 units in Zambia and that was described as a historical sales record. Where would Zambians get the money to purchase a new vehicle. The market for vehicles in Zambia does not really exist remember only half a million people in employment in Zambia. What we need is inovation in science! build things that can attract people with money. For instance develop a good medicament for diabetes, cancers, obesity and everyone in the developed world would import such.

  47. cont from #55]
    My point is as long as someone carries the “investor” tag in Zambia, Zambians will always be xenophobic against that person.

    Sad really.

  48. “This plant will manufacture, assemble cars and distribute them all over the continent considering the strategic geographical location of Zambia (making sure I have a map to show Zambia and the surrounding neighbors who are equally big Toyota buyers).”

    Who would invest millions without knowing the geographical location.
    even my 15 tr old boy can come up with this article. Is it intended for recent school leavers ?. LT pleas choose your articles carfully, many professionals blog hear.
    Do you know what back groung infrastructure you need to manfactre cars ?

  49. This article is a day light dream by our brother, in the first place if Toyata was to put up a plant in Zambia,it can take ages to recoup the cost that they would incur in setting up the plant. People dont believe in such things cause there are so many people who already thought about this idea. Who can be willing to take up that risk of puting up such a plant in Zambia with less than three million people who can afford to buy cars. You failed to run a bicycle industry and what more a car industry. Think about other developmental ventures not that big one my friends.

  50. I HOPE THE PPL CONCERNED READ YOUR SUGGESTIONS OR THEY JST THINK YOU ARE ALL BUNCH OF LOSERS YOU CAN GET LOST AFTER ALL THEY KNOW YOU ARE NOT IN ZED TRY YOUR LUCK BUT NOT WITH RB MENTALITY ITS A DEAD END

  51. Ili lyashi naliwama sana I want to say something nomba ichisungu nachishupa kuti bakuseka. Anyway there are very good contributions coming up.

  52. Strategic thinking and a deliberate fiscal policy by govt to develop sound and lasting transport & communications networks is the necessary prerequisite to developing our country. Like #36 Shamwali stated, this infrastructure will be the springboard for further investments by those with the capital.It is not a bad thing to have ideas like Wesley’s put across to others; remember in brainstorming you do not rubbish your colleagues’ contribution. Rather, You try to better it. Whether those in govt are listening or not, we have to forge ahead and one day we will be victorious!

  53. Gentlemen, let us not deceive ourselves. Zambia is a poor country. Per capita income is among the lowest in the world, unemployment is over 60%. Very few people can afford to buy a brand new car, even if it was by credit finance. A brand new Toyota Corolla could be over US$20,000 which is almost K100m. If a bank leant you that money over typical 48 months, you’d pay over K2m every month, interest included. How many Zambians can afford that. Zambia needs a robust credit industry and higher personal incomes so people can pay back the loans. The banks are already there, but people’s incomes are too low. The same reason explains why house mortgages in Zambia are rare.

  54. My brother Wesley, your proposal, though well intentioned and articulate, might be a bit too premature for our situation. You see, for you to invest in car manufacturing/assembling plant with all the modern machinery, you need to make sure that the market is not only ready but big enough. I can assure you that, for all the brand new cars that are sold in Southern Africa, even that number does not warrant the investments involved in establishing of a manufacturing plant. This is simple economics. Last year, Toyota Zambia, according to their MD, sold a total of 142 new vehicles, and toyota being the market leader, you would not be wrong to assume that Mitsubishi, Nissan, Isuzu and all

  55. #4. Mingeli Palata

    I disagree with you on the 40% shareholding. We tried that during UNIP and it didn’t work.

    I will give you an example of how development can come about. This auto sector proposal is actually a good one. I will give an analogy with mining. When copper started to boom, there was also an increase in mine suppliers.

    These where Zambian owned firms that where supplying mines with equipment. [tbc

  56. What the government needs to do is to reconsider some of the tax laws, why should foreigners get years of tax exemption and a zambian can’t afford even a year? No wonder some businesses by zambians fail, You have to put in a large sum of money and struggle through your first year for your business to pick up. If the government gave even one year tax exemption. Even farmers incur so many costs,and can barely make a profit, unless you are a large scale farmer,so where’s the space for small scale farmers?

  57. TOYOTA in setting up base in SA has offcourse the Zambian market in mind. It is wishful thinking to suggest that TOYOTA would as well set here because they can make an extra 8000 sales. This is not logical thinking. However, to think that Zambia would be an access point for TOYOTA for markets to the north and east would be an idea TOYOTA would consider for sure. The thing that I completely disagree with is the idea that TOYOTA would set up in Zambia because of the Local market. It is more like saying you will open a kantemba buy shoprite’s entrance to sell bread. What!!!!

  58. Very good article from an indigenous fellow. If indeed our govt is a listening one then let it learn one or two things and engage some consultants. Agriculture and manufacturing are very criticle. How I wished some gvt officials were part of this brainstorming. Such ideas should not just gather dust but put to good use.

  59. Anonymous,you are making the assumption we are not exposed to what goes on when you wooing investors.Be foward thinking,some of us have been involved in major capital projects,wooing investors and raising funds for clients.An example is Lumwana mine which was writen off by some pessimists as having low grade copper,nay,they were wrong.In short,look at more than one parameter and we get to involve technocrats who’ve been exposed to similar deals.At the end business is about producing a saleable product or service.Give me the figures and convicing data as toyota,next am in shangombo with a start of the art motor plant.I got plenty of examples of projects that have worked from nothing.

  60. #40 Chewe
    Why cant you contribute like your friend anonymous, this is a serious issue.We need to explore ideas and ways of creating employment for our citizens. But we need to critically analyse what we propose. Chewe I urge you to elevate your thinking, dont think like Sata who has no ability for critical analysis and keeps on Jumping from topic to topic…………….

  61. Investment, any form by nature, is never a bad idea. However, the government has a sacred duty to ensure that it benefits every Zambian by ensuring that policies are formulated to suit the locals. Certain investment arrangements only succeeds in creating a wedge between the locals and the government of the day who is supposed to ensure that there is no exploitation of the locals. In borrowing we must ensure we stick to attaining the objectives of this action.
    Zambia has the potential to soar higher like an eagle. What kills this feat is a bit of selfishness and lack of foresight in some areas and/or individuals.
    Godbless Zambia

  62. cont #66]

    The only problem with copper is we dont set the price. We are given the price through market forces. We cannot charge a different price for copper because if we do, they will buy from someone else.

    As for the automotive industry, we have some price setting ability. 50,000+ jobs can be created in the automotive industry, an extra 50,000+ more jobs can be created from automotive suppliers (supplying automotive industries with parts), an extra 20,000+ more jobs from car dealerships. Millions in export revenue, millions in advertising revenue, millions in banking/insurance revenue, more jobs from filling station jobs, more jobs from oil refinning industry, more jobs in [tbc

  63. #65 contd…other brands, cumulative sales might not even pass 1000 units sold in a year. Now, for this type of industry, mass production is the key word for you bring costs of production down and our market is too small both in terms of numbers as well as buying power. If any government is serious in creating jobs in Zambia, like the other bloggers have said, nothing is quicker than agriculture and I mean serious agriculture. Just to give you an idea, when Mugabe chased the 4,000 white farmers from Zim, do you know the number of black people got unemployed? 400,000, it could even be more! So, this Govt better stop giving lip service to agriculture, get off its back side and do something

  64. #52 You may be right but I am not sure. The biggest problem is not the nonavailability or availability of local or foreign investors but rather in the criteria used to identify and offer these investment opportunities. The calibre of most foreign investors and their performance so far should tell you something about the flaws in our investor identification process.

  65. #74 contd…about it, instead of propaganda and empty illusions of free fertiliser, seeds…yes we need subsistance farming but what will move us of poverty and into perpetual food security is commercial farming, either by Zambians, investors, white, black or what ever I don’t care..development is development!!

  66. cont from 73]

    the bio-fuels industry. Botswana lost millions in revenue because Hyundai had closed the plant in Botswana. South Africa has received extra revenue from their automotive industry.

    Wesley, the government is not supposed to carry out this per-say. Even “Biggie Jim in Japan” can conjure up some statistics, go to the Toyota offices in Tokyo and strike a deal with them. It doesn’t have to be government.

    The investor incentives are there. All things are possible, we just have to drive around the wall sometimes.

  67. That is what SATA said by call in the Taiwanese to make spares for the vehicle we drive, it be come political, now you bring chinese laboureres, even the job for a zambia is gone. ni ba SATA fye.

  68. does anybody in paliament read this. there all these briliant ideas coming up but who will push the govt ukubombelapo. See now the decision makers in the villages are now starving. balelalila mango namasuku. Shame alamweba mukalele mulatontonkanya nombafye ubuteko bwafya

  69. #63 Well that’s a work-in-progress team. Their form is reminiscent of a yo-yo. Now they play exceptionally well, next they appear totally confused like a scared battalion. It’s not a bad team though.

  70. Again anonymous,the 8000 toyotas being refered to are the ones sold by Toyota Zambia limited,it’s not the number of toyotas or auto recs that individual zambians import from japan.You don’t really need a plant to make new auto mobils,you can have an auto reconditioned motor plant.Remember,ERZ-auto reconditioning zambia.Investors are more interested in adding value to the share holders.Crunch the numbers and present your economic and financials correctly,any investor worth their salt will get to buy into your scope.

  71. #76

    ‘investor identification process.’

    That sums it up alright. You dont go identifying investors, you negotiate with ‘Potential Investors’

  72. Job creation is one thing but decent wages are another. We should look at ways to boost people’s income. When the money is there, companies will come, banks will lend us money etc etc.

    The question is, why are Zambian salaries so low? Is there anything that can be done to improve this. HH said he can make civil servants earn K3m a month. Can the Govt manage to do it?

    In Zambia even university graduates struggle to put food on the table, later on save for a car or house.

  73. We have massive iron ore deposits in Kasempa, Mporokoso and Mumbwa.( I have been to all these places ). If we Zambians ( formal employment and self-employed ) can contribute U$10 each per month to buy shares from ‘Zambia Co. Ltd’ , we would raise enough money in one year to mine the iron ore and set up our own steel industry. Then we would start manufacturing tractors , irrigation machinery etc to revamp our agriculture. Next we would revive Maamba collieries and use the coal to make ammonia to revive Nitrogen Chemicals of Zambia. We do not need wholesome foreign investment as we have most of the resources we need to rise above our current problems. All we need are people we can trust and

  74. #Free Market Capitalist

    The reasons why most Zambians ( not the privelged few who are benifiting) are aganist foregin investors in Zambia, is because the govt. chooses investors that exploit Zambia, not help develop local industry! The govt. allows thse foreign investors to dictate their terms, and not the other way round! this is because these investors bribe the govt! and because the politicians and their families are selfish and greedy they accept these unfavourable pre-conditions!

  75. That is a good idea. There are a number of things that would allow that to happen:-
    1. No or less government interference in the running of the businesses.
    2. Policies that don’t depend on parties so when parties are changed they don’t have to think about what is going to happen to them.
    3. Have code of conduct that will protect both employers and employees.
    4. Give them incentives – remember Toyota is not a charitable organization but a business and every business exists to make profits. Give them Tax incentives then they will come.
    5. Assure them the neighbouring countries that have constant petty wars won’t eventually affect them – prove to them that won’t happen.
    6. Assure them we

  76. #85. MOPAO MOKONZI

    Kafue town will recieve one of the biggest steel plants ever created in Zambia. Right now they are still testing the equipment and everything.

    It will be an important industry in Kafue Town.

  77. there is nothing wrong with foreigh investment, but our govt, needs to put Zambia first! not China, not Japan, America, South Africa etc… protect and stimulate the Zambian economy first so that Zambians can compete properly in the markets!

  78. #70 Tonga BULL

    You have used a lot of words, but said nothing meaningful. We need to benefit from you rich “association with big projects such as Lumwana”‘through your contribution. So far you are just beating your chest and sounding war drums without any positive contribution.

    Lets have your thoughts on the topic at hand.

  79. I find this to be very interesting. In particular if it was the government alowing people to express these views and considered them for implimentation, it would be great. Guys dont think too abstract. All these ideas are possible. These other things you talking about infrastructure and so own …does not really matter much at this time. I am sure you could have been saying the same thing before Lumwana investiment. It is thw will that matters and a litsening GRZ. As long as you lower production costs, companies would come!! Look at China and indea, first the set the politics aside. Second, they align their will with developed countries and they doing

  80. #82 Tonga Bull

    Those sound more like ‘your desired terms’ not necessarily the investors terms. Dont you wonder that we dont have these industries already if things were that simple? The fact is that we all know the kind of investors we need but do we as a nation have the necessary prerequisites and conditions favouring that kind of Investment?

    Wouldn’t you want TOYOTA, GM, PHILIPS, HONDA and all the big names set up here? Ofcourse you would but it is not simply ‘wanting’

  81. The moment Kapenta starts becoming in the equation of your inflation rate as CSO does, then know you are messed up. Mealie meal starts being a big issue then forget about these other important things. How can a country fail to address things like palp (Ubwali) for so long??? Wired. And you thing you are ready to compete with Big economies????. This thing about povert and the like are very artificial in Zambia. The stollen money recorded every year can if used properly resolve all these nonsense. Even when mines were doing well, you could not solve one issues, the palp issue. When recession hits the whole things craks

  82. #84, You ask why labour in Zambia is so cheap, well I would suggest that it could be due to the law of supply and demand. With unemployment levels reaching over 60 – 70%, and only 400,000 people in formal employment, the employer calls the shots and he picks and chooses. Thats why graduates downgrade to doing clerical or manual work and those with diplomas are security guards….but all is not lost, we need some economic activity that would create mass employment and thats why I am advocating for argicultural development at levels never seen before in Zambia. Even before you start talking about improved wages, people should have jobs first otherwise there will be no wages to talk about.

  83. Golyati,did you eat your lunch today? Something wrong with you today.you are just attacking everyone.Frutrations ka,this is the government you wanted.you see now,bwafya!

  84. Chewe, youwill always be a loser. Chelsea fans are former Arsenal Fans please next support a winning team and thus MANCHESTER UTD. You will only win the league in your dreams, obvious you already know the owners

  85. The GRZ has also exagerated the free market thign. You guys other countries have some protection and control over what can be taken outside the country especially in terms of money. All these small countrie do control. You cant survive in the current economy witout these. That is the reason the Kwacha thing is being punished. We have not reached that level yet to open up the world markets. Just because some people wanted to externalise and still money at one point should not be a stambling block now????. Ask SA, Botswana, Namibia. hey guys it is very difficult to send money from there??? Clever chaps

  86. #68,anonymous,if you did a survey,you would discover that SA toyotas in zambia are almost negligible compared to those japan autorecs.Look,under AGOA,SA makes around $3bn by selling BMWs to US.This does not in any way mean that the german BMWs which are even better will sell more than those from africa aint being sold in the US.We could for example sell some autos to DRC,etc.

  87. In international trade, you enter a new market by 1st exporting to it. This will give you an idea of the actual size of the market. If the market is big enough, you set up assembly plants to reduce on costs. When the market gets sufficiently bigger, you set up a manufacturing plant. In Zambia, Toyota is at Stage 1: export ready made vehicles, because the market is small. Exporting is cheapest as it requires little investment in fixed assets. Managers at Toyota would find it hard to convince the owners, the shareholders, to invest some of their wealth in setting up a plant in Zambia when the market is tiny. There may never be a return on that money.

  88. This is the approach that PF has ‘more money in the pocket’ by going to shop for credible investors but preferably local. ‘ I will give local investors first priority’ (More like saying, I will give preference to myself to be myself!) empty. The GRZ must work out strategies to benefit from ‘the available investors’ who will meet the basic expectations of our people! We must own up and realise that investors are needed but they also dont come up showing up with a large grin on their faces and it is not simply a question of ‘identifying and willfully getting whom so ever we want’

  89. Chibwe, the article is excellent but it cant work in Zambia. You are still very far to reach this stage, you the auther is thinking too much, pliz think a little bit small and you will be there next time.

  90. 101.
    I agree- well said! Zambia has a lot to learn, and our govt is either not intelligent enough or is to busy stealing to properly protect Zambian intrests!

  91. #102
    My point is that regional wise, as far as TOYOTA is concerned, Zambia falls under S.A and no need to set up a parallel industry in Zambia targeting the same market.

  92. you’re right #109 it’s not a viable thing to do for a large manufacturer, we need to be more original and creative to create employment (and that doesn’t just mean more mineral extraction)…

  93. #106. Anonymousy psychophant

    How can you interprate “I will give local investors first priority’, as meaning prefrence for myself? that is nonsense you allow your bias aganist PF to let you see sense! Surely any sensible and unselfish person can see that the best thing to simulate the Zambian industry is to firstly look for Zambian investors who would plough profits back into Zambia and create jobs, as opposed to foreign investors who take their wealth abroad and bring their own labour into a country that has a high emplyment rate?

  94. When our national leader was seriously sick in France ( MHSRIP) all christians regardless of what ever church one belonged to gathered together for a common cause. This job creation also needs people from various fields so that a lasting solution can be found. Gvt should create this forum and no politicking over it. Some politicians are well known for their loud mouths and may just spoil it.

  95. #91,Golyati..if you can’t find meaning in a subject matter,please ask to be schooled in that given context.Other Zambians at the moment are benefiting from my exposure and knowledge.In December,i will be in Zambia and will take a trip to one of the potential sites in zambia with serious local and international investors.We shall apply the Lumwana concept in this particular project.

  96. Thats a well thot article man, i would encourage that we Zambians come up with all kinds of initiatives in every front; agricultural, manufacturing, tourism and Energy diversification. We should be looking at energy initiative, for example recycling used oil, solar energy that would help alliviate power outage. We should also look at boosting agriculture by investing in research and technology. On tourism, we’ve an tapped areas with tourism potential.

    Now you see when you have intellectual impaired leaders who can hardly think, it just make it difficult to sale a well thot idea like this. We need a listerning govt, a govt that embraces brain and does not look at poltical affiliation.

  97. cont… if unable to find Zed investors, it is then the govt’s responsibility to find investors that will not exploit Zambia, simple as! you dictate the terms as other countries around the world do even in Africa! , not just bend over backwards and take it!

  98. #102 Tonga Bull

    Again, no need to set up a kantemba by shoprite to especially sell bread when shoprite is seeling bread and ‘competing with you’. Dont you see that strategically, TOYOTA would preferably launch from S.A to target the whole sub region?

    But otherwise it is been great discussing thisissue with you!

  99. “THE Government has asked opposition political parties and other stakeholders to come up with suggestions on how best to address the escalating food prices for the benefit of Zambians.
    Agriculture and Cooperatives Minister, Brian Chituwo said in Lusaka yesterday that the Government was committed to dialogue, especially over mealie meal prices and shortage of maize in Zambia.”
    [times of zambia]

    Lets hear what ba SATA will say. Let’s hear the solutions from ba SATA.

  100. Manchester are the current English and European champions. I know of some teams that have never touched the champions’ league trophy…..

  101. Baby C agree with your comment at @99. My comment on Bendtner – get rid of the pink boots and start scoring again we need trophies as much as Zambia needs jobs

  102. Toyota is the 2nd biggest auto company in the world. Believe me they do market research. They only set up plants if there’s a business case for it. Asking Toyota to set up a plant in Zambia at the moment is wishful thinking, unless you dont know what you are talking about. Let us look at attracting investments in areas where it is feasible, like power generation, tourism, agriculture and mining. As for manufacturing, it will have to be selective. Manufacturing follows market. Local market is small. Export processing zones may help to attract some investment. But this requires serious commitment on the part of Govt, as you will be depending on foreign markets. But they are worth a try.

  103. This article is a failure so maybe bring another idea and we advise accordingly. How can a government be geting a loan of 24m$ and you beloieve that this can develop the nation.

  104. #109,anonymous,all big multinationals got regional sales HQ,in this case SA is,say for SADC.However,when the market conditions in a particular country of that sales region become favourable,that company sets up an office.An example is Larox filters(Finland) whose regional HQ is SA but has now set up base in Zambia.

  105. Imwe habe you heard that Xabier Chungu has handed himself over to the Zambian police? He is meeting with the I.G now at Police Headquaters, landed in the country around 10 Hrs. Very interesting turn of events. There are suspicions that he has struck a deal with RB and VJ…lets wait and see.

  106. #111 Miss President My darling

    Who doesn’t know that ‘Local investors’ should be given first priority? The simple logic Iam trying to put across is that there is no need parroting this ‘local preference thing’ when there are no local investors in the first place. O.K tell me one local investor ready to manufacture cars and he has voluteered to do so and GRZ has turned him down?

  107. Man U has some one called Raphael Da Silva the twin brother of one Fabio Da Silva(Man U). Any reason why they say Brazil has a machine that churns legendary artists of the not-so-round ball dubbed football?

  108. You guys, I think it is not correct to say Zambia falls under SA or this region thing. When it comes to bussiness, GRZ should have strategy and can dictate a lot. The problem really is that GRZ made it very difficulty if not impossible to do business in ZED. Production costs are highest may in the world. You look at fuel. Fuel in Zed if you did not know is the among the most expensive world wide???. The measuring stick of how you are going to attract investors are 1. Corruption levels (where there is corruption genuine investors would not come because it causes wars 2. incompetent people runing the interests of the people (this sparks hatredh and midiocrit) 3. High production costs

  109. #122. Rashid Jones

    For a small nation like Zambia, $24 million is enough to do a lot in the development of the nation.

  110. The other thing we should note is regional trade. We need to understand why these regional trade areas have been set up – Comesa, Sadc etc. Zambia is signatory to them. This means some businesses will find it more sensible to serve a region than a local nation. Look at Toyota, BP, Larfage, Lever Bros etc. In early 2000s BP downsized in Zambia and moved jobs to RSA. I know of colleagues who got transferred to work in RSA from Lusaka. Lever Bros closed Ndola manufacturing for the same reason, making Zambia just a marketing centre. So when you approach Toyota to come to Zambia, remember the forces in our free trade areas, they are real.

  111. #132 UK-ZED Observer,

    Spot on! You have made a point and indeed you know Zambia’s issues, unlike even the guy who wrote the article we are referring too. The article is too shallow, not well thought out!

  112. #132 U-Zed Observer

    Very few people are aware the details of these regional trade agreements, what tax arrangements are entered to for goods from individual countries. The obvious fact that SA has a great advantage over the rest of the countries in the region and our GRZ needs to properly assess pros and cons of entering these groupings. I agree that caution should be taken when entering into these arrangements.

  113. #134. Annoymous

    You are typical of the Zambians that talk down our nation frequently on this blog.

    “MMOBILE Telecommunications Zambia Limited is set to open the US$3 million mobile cellular phone assembly plant before the end of December.”
    [dailymail zambia]

    If that can be done then a car manufacturing plant can also be done.

    “The project is expected to be done in phases from assembly plant through to manufacturing by 2013-15.
    MTECH brand will range from ultra-low cost to state-of-the-art Wi-Fi connectivity phones with television in future. ”
    [dailymail zambia]

  114. Baby c and Rashid Jones.you guys know for sure that the only club with quality world class players,is chelsea.Just look at how many goals we have scored so far.This shows how sharp our striking force is. We have had serious injuries,Drogba was down,Deco, Ballack and the five in 1 michael Essien.Just wait and see,we are getting the title. Essien wil be back soon. Lets disscus football guys. We analise these other issues everyday. Dont listen to what the confused Golyat is saying.After all these analise just end here,amonguest ourselves,the politicians dont even know what we talk about!

  115. Free-Market-capitalist, if it was a donation, yes i can understand but not a loan man. Zambians dont be so petty, you can do beter and let not anyone cheat you, development start with an individual. look at how people are ignorant about throwing liter anyhow, and they dont know that development starts from there.

  116. No. 89 Free-market capitalist- I have been to that plant. I have also been to the source where they will be mining the iron ore and I made blast designs for them. Now these are foreign investors and I was talking about we Zambians owning something of our own.Some social responsibilit decisions that can be made by a foreign owned campany will be markedly different from those that we as Zambian would make.So we are better off making our own investment.

  117. It feels good to be back on the blog, more controversy coming your way, plain and clear-cut truths about who you really have running your government. Brace yourselves fellow bloggers, don’t be offended by the truth, only it can truly set us free, even if it hurts. Firstly we have to accept that conditions in our beloved country are not well above optimum, secondly let us not shun our beloved motherland, thirdly don’t be intimidated, it’s okay to point a few fingers at those you know are to blame for the corruption, injustice and other primitive vices. No hard feelings, LT but if you take someone off the blog because the comments are too sensitive, he’s on the right path. Happy blogging.

  118. #141. Rashid Jones

    Do you know that Zim white farmers where asking for $100,000 for their farms which Mugabe refused to pay??

    Rupiah Banda is serious about agriculture which is the main occupation for many Zambians. He has a farm, and agriculture as well as manufacturing was the whole purpose of his state visit to Nigeria.

    Rupiah Banda is also the architect of the Fertilizer Support Program. I am sure most of that money will go into our agric sector. If it does then it is enough.

  119. mapatizya formula. we need serious intervention measures to sort out the problems we a facing unlike this type of fantacy. it reminds me of the story of oil from grass.lets learn to be productive ourselves .

    how many pipo in zed can afford a new ride from a factory. these cars would only be cheap if quality will be compromised to suit zedian pockets.

  120. pliz zambian we should do something for our country coz this old new goverment is just distrong the nation or our belovend contry.im say that becoz, youths are the one who are being used by the politian so it is just the matter of forming our own party so that one youth will give him supporty.youths are runing big organazations were big moneys are beig papt so way should we keep on leasen to the old people,if i was to find money for capaning i would start now with your support, essepasully those who are in abroad.

  121. Chewe, thus the problem with Chelsea,they have only stars and that makes cordination very difficult. Look at the way you got frustrated against Arsenal and believe you me Scorari is not a good couch. Anyway, if you insist we will wait and see. Arsenal is just there to entertain and cant win a trophy.

  122. I like your article Wesley but is more of a dream than a reality. It is true that the governmet has resposibility to create jobs for us. But I thinks we Zambians need just to wake up from our laziness and not always look up to the government for everything as it were in the Kaunda government. Our country is blessed with many resources and yet we do not know what to do with them.How come a country like kenya has a better economy than ours when its income is mainly from tourism and the export of flowers. It is not surprising that RB wants even to invite my 419 brothers to come and show us how to make use of our resources. NA WA O FOR OUR ZEDDY!!!

  123. UK-ZEd Observer, I like your thinking…you should have written the article (sorry wesley!). But you have not responded to my answer on #97 to your #84 question..

    Baby C, Bendtner can make you swear in a language that you don’t even know. I don’t know what Arsene sees in him..give him twelve chances, he will miss thirteen including the one that he created for himself. The new revelation yesterday was Merida from Spain (from Barcelona youth team)…he’s one for the future definitely, just like Cesc!!

  124. to attract investors governments must be seen as being capable of running a stable economy which RB and his thugs are NOT. with an unstable ZKW who would they control cost? people open your eyes, you put incompetence in office and now you would like the world to reward you? get real!

    with a banking system that demands 10% of capital moved into or out of the country who will be willing to part with that much cash for nothing?

    the truth is Zambia will have to fix a lot of it economic systems and stop stealing investors money before any serious investments can be realized.

  125. Agriculture is a very unpredictable venture, LPM tried and i think the fruits were not good enough. You are importing maize today, surely Zambia has so much land and should not be importing maize but exporting.

  126. #114 Tonga BULL

    What Lumwana concept?.Big sounding words for nothing, lets have something substantive from you on the subject at hand…your ideas sound as inert as the village concept of Miyanda.

  127. Do yoyu know that there are some districts in zambia without a bank like NYimba. Now imagine, where do all those business people keep their money? development should start from such areas as banking because that will encourage people to save money and invest.

  128. UK ZED OBSERVER and Anonymous

    Most of us have been greatly enriched with your contributions. You have illuminated us on the various factors that would make investment on the scale possible in a mono economy third world country like Zambia. My hat off to the both of you.
    I look forward to your contributions on onother critical subject.

    I can tell that because of your insightfull contributions you are not PF cadres. It is great to have you as Zambians.

  129. #152, problem with Zambians, me included, we think agriculture starts and ends with maize, groundnuts and beans….ther are so many things that can be grown within Zambia at such a scale that they will trigger agricultural processing industries in both the rural and urban areas. We will export unprocessed and processed products but as our industrial base grows and our manufacturing capacities develop, our exports will incline toward processed products. Thats how industrialisation begun and developed, but here we want to skip the steps and go straight into cars, mobilephone, computer manufacturing, yet we forget the development of our people behind.

  130. #152 you are right , is our land not fertile enough to cultivate enough maize for our country? why should we be importing maize

  131. #152. Rashid Jones

    “Agriculture is a very unpredictable venture”

    Tell me one industry that isn’t??
    LPM concentrated more on mining than he did on agriculture. We are importing maize because LPM sold a lot of our maize stocks to Zimbabwe and now we are suffering from that.

    Zambia does have a lot of land but due to neglect from KK and FTJ in the industry, we are paying the price today. The white farmers that relocated to Zambia are making more money in Zambia than they where making in Zimbabwe.

    Zambia has enough land to grow cotton, chillies, tobacco, maize, tea, cassava, rubber, groundnuts, wheat, bananas, pineapples, etc. A whole new stem of industries can come from this.[tbc

  132. From there, we can see an increase in more millers, more jam making firms, more tobacco firms, more transport firms, more fertilizer firms, etc.

    Rashid, I dont understand your reasoning. You need to think outside the box sometimes (which is what you are failing to do).

  133. Why must the Government always initiate stuff??? Why can’t we find a way to do some of these things ourselves?

    Governments world wide are not good at conducting business. That’s for the private sector. Government should only provide a platform for investment and then we do the rest. If we need their input, we consult.

    I personally resent this idea of Government needs to do this, Government needs to do that. Even the US Gov which is buying shares in struggling firms will one day have to off load them because they can’t sustain that sort of activity forever. It’s merely a stopgap measure for an ailing economy.

  134. Im told there is a Cellphone industry being set up, does anyone know where it is situated. That should be the starting point for Zambia. Uwakwisano, I thought maize is the main source of atsble food for Zambia.

  135. Wesley Nyangwe I salute you bro,I can tell by your article that you really love the pipo of Zed and the country itself.May the Lord bless you Bro.How i wish the pipo in the govt were thinking like you,this time we would have not been other countries were they consider us as pipo without a country.I have done Auto mechanics at nortec unfortunately I hunted for a job for 2years without finding one.So I’ve decided to try accounting hope I will be able to find a job back home when I finish in 2011.Hey govt try to creat some jobs for us and we will also do that for our children.

  136. #156. Rashid Jones

    “Do yoyu know that there are some districts in zambia without a bank like NYimba. Now imagine, where do all those business people keep their money?”

    Geez Rashid, people solve problems. Sitting around is not going to help. You have to solve problems.

    Banks are private institutions and it will not be in the best interests of the bank to set up a branch where they are only few customers.

    The people will keep their money at the post office. That is what they used to do anyway.Problem solved.

  137. Chewe i think you are the only staunch Chelsea fan. Chelsea is one team which has got fake fans in Zambia. Chelsea Fans only resurface when their team is at the helm of the table.If they make a mistake of sliding way below the table, they all vanish like dew claiming to be Arsenal or Man U fans!

  138. #166 Rasheed, you are right Maize is our main crop and it is very important, however people should not limit themselves to maize or the other common crops…like # 164 says, we need to think outside the box….the jam we eat and juices we drink come from fruits that can be commercially farmed in Zambia, there is already the export of flowers and all but how many people know you can do this at a large scale and make probably 30 -40 times what you make from your maize with half the hustle? I am not an expert but I think if we put our heads together, the agriculture sector will woken from its slumber.

  139. 155. Anonymous: Do you have any kind of business in Zambia, I at present have 8 horses (by that I mean tractors) at an average cost of US$50K (approx ZK250M each), I feel your great governments economic policies each day; besides I do employ 15 Zambians in total. my question to you is what are you doing for Zambia? you want to talk invesments, where is you money? talk is cheap.

  140. Free-Market-Capitlst, Most zambians including myself
    think Agriculture is a dirty job but being in offices as we are right now.Agriculture to me is not a good developmental venture, Zambia cant develop with agriculture because people started agriculture along time ago adn we are not moving forward. Lets think of other developmental ventures. Agric shuold just be for zambia’s consumption

  141. #176. Rashid Jones

    Then what do you propose. The Zambians that think agriculture is a dirty Job are Zambians in urban Zambia and Bembas (no offence).

    For many Zambians it is the only job. Please tell us, what developmental venture do you propose for Zambians in the rural areas??

    Agriculture made up about 60% of Zimbabwe’s foreign exchange earnings. Agriculture is an important industry. It can lead to the development of more industries.

  142. # 137 – Yes, Xavier Chungu is back. I personally saw him at the Airport at noon. He was driven away in a Pajero believed to be from the Task Force.

  143. One of the simplest things to start with is the of manufacture of service parts for vehicles. You will realise that car service parts are like food; market if extremely active. This type of manufacturing does not deed too much investment, yet very profitable. To encourage you more I must remind you that 98% of vehicles on the road are second hand vehicles and you and I know that old vehicles need more servicing than new ones, and so coupled with bad roads demand for service parts is more in africa than Japan. Even in an event that we open up some assembly here in Zambia most Zambians will continue to get second hand Japanese vehicles than the new ones because of affordability.

  144. The point I am trying to make is that for each piece of heavy equipment imorted the Government assess 27% duty, then when the money is transfered to the bank to pay the duties the Bank takes 10% so one always have to increase fonds by an additional 3% just to cover the bank charges. nowhere else in the world do banks operate like this and if governments whant to incourage investments 27% for farm and heavy equipment is too much. one cannot say we want to encourage investment on one hand while robbibg the investors with the other.

  145. #180, can you furnish us with more info. I heard this from my sister in Zambia on phone.I hear he has already been nabbed by the police force and that he is now being held in their custody at Lusaka police HQs.

  146. #184. Rashid Jones

    Northern and Luapula are the only provinces that contribute little to the agricultural sector in Zambia. That is why a lot of them go to mine in the Copperbelt.

    I would like to see your empirical evidence that Zambians think agriculture is a dirty industry. From what I know, 80% of Zambians are in the agricultural sector and a lot of them applied for the FSP but only about 13% stand a chance to benefit.

    I would like to see your evidence.

    And while you are at it, can you please offer some solutions to Zambia’s problems.

  147. Shall we stop talking about things which cant happen pliz.do you think that Chungu can come back to Zambia with all the cases waiting for him? Unless if you tell that RB is tolarant on corruption in the name of fake reconciliation!

  148. #182 cont’d,
    While the Idea of assembly is a good one, I must state that most of the economies have thrived on support/secondary industries. For exambple we have so many companies in Dubai manufacturing these service parts and very little assembly being done. We also have South Africa manufacturing the GUD, TONI etc brands of service parts for the same japanese vehicles and making significant contributions to their economy. We may not need to be in a hurry to much our friends in terms of industry but we need to be very strategic. Some ideas are more readily workable than others even when all may in fact be good. The issue of priority therefore aught to come it.

  149. Before we ask others to build our country for us, we should first learn how to build it ourselves. Why are we quick to finger point at people taking local jobs when most local firms don’t care if the work they are carrying out is of sub-standard or not? If we are serious about development and job creation then our attitudes towards work need to change. Zambia is a developing country meaning the opportunities for work are endless. We have hospitals,roads,schools and many more infrastructure ralated issues to build and develop.

  150. If its true that xeviour Chungu is in Zambia,that wil make the work of the judiciary easier.Because he is a key person in most these cases.His disapearance contributed to the long time these cases have taken in court.

  151. #183 Onlooker

    All Agricultural heavy equipment attract Zero percent tax at point of entry unless they are declared anything else. It would be overtly unfair if what you have said is true. Consult your local ZNFU offices for any assistance regarding that.

  152. #188 Chewe, if you have any relative at Airport or task force, kindly confirm with them. Xavier is back, case or no case. I hope you will still be doubting even tomorrow when our daily papers will carry the story.

  153. #183 Onlooker

    Iam usually at the Kazungula border and will volunteer my assistance if at all you require to bring in Goods. Individual GRZ/ZRA workers at these borders are the ones tarnishing the image of GRZ. If you wont trust me, make sure you get intouch with ZRA headoffice and report any suspected unfair treatment by officials at borders. The other possibliity is that your agents are swindling you by declaring fake border certificates.

  154. #193. chichi,
    I think we are not teaching Banda here.
    It is wrong to think that these things should be done by Banda.
    You and me must begin to do these things not Banda.
    In fact Banda has people in strategic sectors of the economy and they are able not only to give him advice but move things themselves.
    But you and I have a big role to play; as long as we think politicians must come up with firms, we will continue to see foreigners do business and employ us Zambians. The government can only end at providing the environment. Even now, while the environment is not at its best, we have reasonable room to do more than we have done. But mostly we have treasured complaints.

  155. Iwe Chi No way,epo waba kanshi.You have very bad language. The most vulgar person on this blog.i dont have words with this creature no!

  156. Thats a very good artical, with a briliant civil service and the private sector that Zambia has, we can make progress. Though it pains me to see that the Kafue Gorge Project will not start until end of 2009, now Gentlemen my question is at what cost are we extending the complition period of this great project?

    This will result in great load shedding, who do we then attract foreign direct investment?

    What exactly is a problem?

  157. The article is a childish one. it would actually be very expensive to run such a plant and the vehicles produced would also be very expensive.The Auto industries do not manufacture parts they rely on suport industries. i.e most electronic sensors in a VW, Audi,limborgini are manufactured by Borch.Even toyota, those seats you see in the cars are not manufactured by toyota. Toyota only have an assembly line and subcontracts the rest. So if toyota brings the assembly line are they going to come with the rest of the companies like motorola to make on board computers and other accessories for them. who is going to manufacture bearings? are they going to use usedjapan.com? that will make expensiv

  158. 196 cont’d,
    It appears everyone seems to have ideas which they think politicians must undertake and not themselves. As long as we think that someone else needs to implement our ideas, we will never move. While it may not be at its best, none of us can claim that we have maximised to exploit the business environment obtaining currently in Zambia. We seem to always find excuse, and yet do nothing. In the same environment foreigners and some very few determined Zambians have managed to do tangible things. We always feel that anyone who succeeds had a better previlege than us, wrong! Bill gates is he was in zambia with Zambian mind he was going to find someone to blame or to implement his idea.

  159. Even the toyota label itself that you see on the cars is not manufactured by toyota. what Toyota does is design a lable and subcontract a well skilled machinist to do the job. if an assemly line is giving out 200 cars a day the machinist must also be big enough to produce the same numbers.in terms of engine designs toyota subcontracts universities to do that and the designs are partented. will our universities be able to do that or toyota will have to go back to japan. after the parts are designed will toyota go back to japan for manufacturing or that will be done here as well? Wesley Ngwenya dont just Yap before you understand how engineering entities work, leave that to the owners

  160. theoretically that sounds good, however its not as simlpe. that Worked for VW in eastern europe can it work for toyota in africa(zambia)? NO! African economies are not a viable market for new cars. we are strugglilng finacially. what can govt do to reduce unemployement?
    1. Reduce incnome taxes and stimulate disposable incomes
    2. Increase Govt spending on infrustratual development to stimiluate economic activity
    3. empower zambians in the maufaturing sector to reduce our propensity to import
    4. Strategically reduce interest rates and increase money supply,
    Don’t zambians know about Keynessians economics??? not to fuel inflation!
    5. encourage small business enterprises

  161. Free market capitalis you are right Northern and Luapula contribute the least to agriculture and yet they have probably the most potential to be strong agricultural stongholds.Just because we are traditional fishermen they want to stick to that (I am bemba so this is not a hate statement its an acknowledgement).Nway with all those swamps and water it could be good for rice growing, but of course our food security is MAIZE ONLY and no other, #202 if i had the resources i would be the first to dash there and show them how it works, thats why we are looking to the govt because they misappropriate funds instead of pouring resources into areas that are profitable

  162. Wesley Ngwenya,

    I now understand why your Diaspora aquired education has failed you a placment in the Zambian economy sorry to say this.Do more and better.Your mentality and economic plan are misplaced and not really progressive for a country without an economic base as ours.To me you don’t sound to be a good business analysist, planner or economist.To make matters worse you have shown how basic you are on fundamental Japanese economics and their policies of why they have SA only on the continent manufacturing and assembling cars instead of other substantially big markets like Kenya,Egypt, Nigeria or the Sudan sharing the base.

  163. Toyota would never agree to setup a manufacturing plant in Zambia because it would be detrimental to their economy and would affect production. Part of the reason why Japanese car manufactures are doing so well compared to the UK or US is because of the clever rules they have implemented in Japan with regards to new cars. For instance, if your vehicle is older than 5 years, you are encouraged to replace it with new one rather than face the stringent vehicle fitness checks which would cost you almost the same as buying a new one. So you can imagine that if Toyota setup production plants in Africa, what would they do with all the old cars? and all the shipping companies?

  164. #204. take take take,
    very right, the issue of affordability is what drives people to buying second hand vehicles from Japan. In fact people must understand that South Africa makes so many vehicles of various types per year. But Africa is not its main market, but Europe and the middle east. This must tell us a story. Most Zambians dream ideas and get convinced they are workable before they do research. As I said earlier on, the issues we should be looking at are those of coming up with secondary/support industries such as manufacture of vehicle parts. Service parts for example are like food; demand is high especially that we buy old vehicles from japan. The investment in this is also less

  165. The article is not well researched and i think no attempt was made to do so. the outomoble industry relies on suport industries.All parts you see on a car are manufactured different companies. once the car is made its then sold by a dealer who has to give you a warranty meaning that he must be skilled and competent enough to work on that vehicle under all circumstances. the dealership is an industry on its own but rely on other accredited industries to make service parts. Do we have these in Zambia before we call a toyota assembly line. Then the buying poer of africans, if an assebly gives out 200 brand new a day how many can be sold in africa against usedjapan.com

  166. Our economic solution is not in soliciting for assembly plants from developed nations but building our own sustainable economic base.We need to build capacity.Do you know why Livingstone Motor assembly,Rover Zambia and in Kenya their Kenya’s maharaji assembly went under?

  167. The Govt to come up with a deliberate policy and promote it so as to enable self employment. Please look back seriously to the Trades schools/Colleges where pipo can learn various skills. Another area is farming, Zed has vast land that can be utilized for purposes of farming businesses.
    Good Luck and God Bless Zed..!

  168. It’s very interesting to read some of the views on this article with some good points & very bad ones as well. One thing is that you are all right based on what your beliefs and perceptions are.

    I thinking, the greatest pleasure in life is doing what people say you can not do it! So, don’t discourage one another, but brainstorm on the pro & cons of how Zambia can develop! Man is endored with greatness, we are misusing our GOD given potential!

  169. Tonga Bull, Are you an engineer to say the biggest cost in setting up a plant is the generation of Eng drawings, this is not correct, the drawings are in place if you are an engineering company that specialises in a particular eng field. Eg I work for a Mineral Plant Engineering and Design company and I can tell you the plants we design and build are generic as long as the plant is used to perform a similar task. The biggest hurdle with Zambia if you had to do the feasibility study on stting up the plant will be the profitability of the business due to high operating costs, political instability, location and infrastructure availability.

  170. Wesley Ngwenya,

    Does not know that the Japanes auto industry is heavily protected with heavy subsidies.Economic reasons for such policies are many.Besides this, Japane is a push heavy economy of exports.Cuttting on exports would alter their job market and taxes.A plant that employes 500 Japanese in Japan would not be employing the same of japanese in Katete you are talking about.Japane is a highly protective economy.

  171. Poverty is a Mental disease ledies & gentlemen! Once, Man has convinced himself that he can’t do a task, then failure is sure to occur. Personally, whatever goals I have set for myself, I have accomplished the results! So, let us change our way of thinking & looking at things. We need to set goals & have a driving desire to get the things that we want, then I will see all you Zambians at the TOP! Charity begins at home as the saying goes, and this home is within each and everyone of us-our minds!

  172. xaviour has not come back out of his own will,some one must have asked him to come back,wait cases will be dropped soon

  173. With GOD’s help and personal dedication, there’s absolutely nothing imppossible under the Sun! I can bet on that! The trouble is that people on this blog see themselves already failing even before starting a task! Human Resource Management is the greatest Asset we have! All what is needed is to bring in experts in there own fields like #213.Iron Lion, Prof. C. Chirwa & others and say, design such a plant for this purpose. Step by step things will start taking shape and thus how it begins!

  174. I like people who weigh issues and bring about the pros and cons of any idea. I have seen people who have borrowed money from friends or work place, not from the bank because their proposals would not pass requirements in that they do not do the slightest of research. They have gone ahead and invested significantly in certain sectors only to find that supply of raw material is unsustainable or the market they thought was there has so many better alternatives. And so they have ended up losing their houses which they had agreed as security. The other thing I want to raise is that people seem to want govt to play miracles for them. Will cry all your life is the trend in gvt does not change?

  175. While such industries would be welcome, but what happens when these japanese decide to pack thier bags and go? Back to unemployment. We need to empower our own people establish medium size businesses which will grow into big corporations. And the way to go is establish agri-based industries. It is time we seriously invested in food procesing industries to be self sufficient in food supply. Some of the stuff we import can surely be manufactured in Zambia. That will save us forex and create jobs.

  176. Sorry to say this, there is not a manufacturing company nowadays that will employ 60 000 people with the automation technology that is available.

  177. Wesley, are you talking about asking the Japanese to start a second hand refurbishing plant, or what? If that is the case, then good luck to your idea, if you are talking about a first hand manufacturing plant, may I ask what they are going to do with the South African plant that is meant to meet the needs of all of Southern Africa? The Zambian plant suggestion is therefore unviable [in the eyes of the Japs].

  178. #219. Observer,
    I agree with you. We would have little or no control on assemblies that would be set up here, if that happened. they would not be moved by our poverty but by profits.
    Considering the issues of support industries is less costly, less risk and more workable. Whether second hand or new, made in Japan or elsewhere, cars we will always buy. This means that spare/service parts we will always need, meaning market is assured. The cost of setting up such businesses is not as high meaning we can easily afford. With this we would have full control of the businesses run by ourselves.

  179. Any one one thinking about putting up a bio Diesel plant, the technology is readily available and very simple. Our country is blessed with the resources that one needs to set up this industry. This is my area of interest now and currently putting up a business proposal with a South African friend and if it works out in term of finding the financiers, I will approach our Govt if this business can be set up that side.

  180. I think the idea behind the article in spot on but the practicality of the suggestions is questionable. As many have alluded to, Zambia lacks the support industries necessary to facilitate the establishment of such a plant. Add to the mix poor infrustructure and high operating costs and you have a major deterent for such investment. The Zambian govt needs to realise that unless an enabling environment is created, such investment will be nothing other than a pipe dream. We should consider that there is hardly a market for new cars in African countries. Therefore, setting up a new car plant in Zambia may not be practical at this point in time.

  181. #222 cont’d
    Even in an event that TOYOTA International went under it would not hault our operations as Toyota would not be the only one the parts industry would focus on. This is because it is cheaper and easy to diversify regarding support/secondary industry. In parts/service parts manufacturing you not very litle in terms of time, tech and resource to diversify compared to assembly of vehicles themselves.
    China today find it difficult to export their vehicles because they had not investedin the parts manufacturing.
    You see, we lose so much forex through export of not only vehicles but mostly the perpetual import of parts to service these highly demanding old vehicles we import.

  182. Lat part of #225 correction:
    Not export but ‘import’
    the sentence should read:
    “You see, we lose so much forex through import of not only vehicles but mostly the perpetual import of parts to service these highly demanding old vehicles we import.”

  183. wesley, put something on how high instution of learning (unza ,NRDC,etc) can postively use their knowledge to create employment instead of day dreaming

  184. Block and vanquished former Zambia spy chief surrenders to police

    Zambia’s former chief of intelligence has given himself up to police after being on the run from corruption charges for more than two years, police in the southern African nation said on Wednesday.
    Xavier Chungu surrendered himself to the police in Lusaka this morning and he is in our custody,” Francis Kabonde, the inspector general of police, told state media. Chungu made no comment when he was taken in.He has lost a wife, properties, homes and children to either drugs or prostitution.He has no reason to live for.What a life!

  185. Was run away worth it? Who has turned a life time loser now between the people of Zambia and Chungu? Foreign nations can treat you to a grandeur but not long when you are out of power with nothing to bnefit them.Chungu is a sad loser.He has lost friends, dignity,family and properties.I will not be stunned to hear he has surrendered for a descent burial out of depression.It was a loser’s move.

  186. Job Creation is not only for the government it is also for Zambians to be investors in their own country.To be able to create employment, to create employment one needs to think outside the box. The people should not look for the government to create employment and the government should not wait on foreign investors to create employment, it is a duty and thing every Zambian should have in their minds. We need a change of attitude and believe in ourselves as Zambians.

  187. #229 I feel sorry for you. The man knows he will be free. Levy is dead-simple my “sister”. lol!

    Chiluba was gagged, but now he opens his gob like a frog, VJ is back.

    Africa, fyacabe. Uko! Amigo!

  188. “As Zambian government we would like to give you an opportunity to open a Toyota Plant in Zambia. This plant will manufacture, assemble cars and distribute them all over the continent considering the strategic geographical location of Zambia (making sure I have a map to show Zambia and the surrounding neighbors who are equally big Toyota buyers).”

    Did you consider that there is Toyota South Africa which manufactures its cars from scratch i.e. feasibility studies, design and production, and servicing tailored for African Conditions. The Toyota SA is just 1h45min away from Lusaka Intern. Airport and 18 – 24 hours drive. Hence, Toyota Japan coming to Zed would be tricky!

  189. I think this Chuungu thing needs to be watched closely. Why now?
    Is there a deal between him and the Ni-Banda government?

  190. Considering that Sata publicly declared as his priority policy to unconditionally pardon Xavier Chungu a day after winning electionss, the plunder’s surrender and self humiliation is the surrest way of his loss of hope in the Sata dream of ruling Zambia.He has just put a nail in the Sata Guy Scott ticket that no way no how will they ever enter plot one.The poor soul is tired waiting for the unknown on foreign streets where everything has been lost.Even captain solo in Mukobeko whose family visits him and children going to school is happier than Chungu who has nothing to his name.Wife and brother Emmanuel late MP gone, properties frozen and children surrendered to Hiv Aids, prostitution and i

  191. Wife and brother Emmanuel late MP gone, properties frozen and children surrendered to Hiv Aids, prostitution and illicit drugs for the state of hopelessness the father left them in.Was plunder worth all these tribulations?

  192. let us zedians, stop wishful thinking about toyota things and concetrate on small things that can better our individual lives such as backyard garden & saving on water usage and electricity

  193. #230 dull very dull.dont you know that the Government is suppose to offer a condusive platform.Even what other people are suggesting has for so many times been researched before i was born in 1976.Go to UNZA OR Government archives.

  194. Good Governance,physical monitoring of projects,accountability,good management styre (not necessarily having a paper- sometimes which of course should be supported by good personality and good workmanship.Give BELA in kitwe to proper guys you can see wonders.

  195. This is a common sense plan, but none the less the fact that an attempt at a plan has been made is commendable. There are however some factors that work against it. Firstly the means to buy brand new cars for most of the population do not exist and in any case for people to buy brand new cars, they generally need access to financing which remains limited in the Zambian environment though moves continue to deepen that sector. Secondly and perhaps in tune with the first difficulty, the demand for cars in Zambia is not as high as it appears at least in terms of the economies of scale that would be required to bring the real costs of car manufacture down.

  196. Thirdly the plan is based on the premise that existing facilities that currently serve the Zambian market i.e. plants in South Africa, Malaysia, Japan itself etc. are facing capacity constraints (this would need to be tested). Lastly, the country is not set up for major manufacturing largely on account of a poor infrastructure and under developed logistics provision as a result. For capitalists like myself this is perhaps where I would spend most the effort if I were in government. We need to upgrade our communications backbone, upgrade railways, upgrade our roads, airports, electricity infrastructure etc. Else we can forget about meaningful progress on this competitive earth.

  197. Golyati,even your name says it all,a big bully with brains the size of a cockroach.Your mind stinks with negative vibe.You sound like an MMD cadre who’s acting like a a colonial kapitao and wants to patronise all the bloggers.You one of those petty minds who just throws made at anything brilliant and is above your small brain.You such a charlatan!!!Your not understanding the Lumwana concept should not make you rant just for the sake of deamining others.Atleast,anonymous presented his points,yet he still appreciated my comments as well.People like you should throw your little demonic egos in a sewer.

  198. #244 It is not as simple as you think. One as to be prepapred to be corrupt. There is just this culture of “if you can`t beat them, join them” in Zed.

    You can harvest millions of tonnes of maize but you still have to know and bribe a few people to sell them. That is how sad life is back home my friend.

  199. #245 Tonga Bull. Golyati is a cadre-MMD cadre. You are right he is very patronising. It is unfortunate he claims to be learned. I am surprised he has resurfaced when I made him run away three weeks ago.

    The man has never seen a home phone which uses power and he wanted to come out like he was very smart by claiming I was talking about a fax machine. This goes to show the kind of cretin he is.

    He has selective hearing and will only contribute when it suites him-just what you find in cadres. I bet he has seen nothing wrong in Chungu turning up when LPM has died.

  200. Agriculture is the one big sector which remains untapped and docile. Investors can create jobs quite alright but thats how far it goes. Casual jobs. U will be lucky if you even get a pensioned job. Author another thing to consider is the Japanese are into total quality management you need advanced factor conditions that will facilitate production of the cars. That could be a long term strategy for Zambia maybe but lets sort out our basic factor conditions such as road networks, communication sector and energy. These Japanese cxannot even afford to have one hour of an electricity black out, something we are seeking to eliminate in Zambia.

  201. NO 246 U should talk about what you have experienced and not just dreaming. I harvested 400 bags of maize which i sold to FRA they gave me a cheque. So what are you talking about.

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