By Daimone Siulapwa
Ever wondered why the Chinese are willing to pay so much for a small piece of land? Well, it is now common knowledge in Zambia that if you want to sell your piece of land, just look for the Chinaman. They will pay top price for it.
But the million dollar question is whether they are really paying top price? And if the answer is in the affirmative, then we ask must ourselves WHY?
Trade and investments have in the recent times been the main drivers of the Sino-Zambia relations. In fact, that is the case for most African countries. China as an emerging global economic powerhouse is interested in securing primary products such as copper to feed its industries.To ensure that it has first consideration ahead of the West, it has increased its aid to Africa, increased preferential loans, eliminated tariffs on more than 500 products from Africa and have canceled more than $2 billion of debt from over 30 African countries.
These offers from China have made headlines in most African countries.
Just recently in Zambia, the head line was “Chinese Bank to lend ZESCO $430 million”. Most African countries are happy to receive the aid from China because it comes without conditions attached to it. The only one, which in any case carries little significance is that the country severs formal diplomatic relations with Taiwan, regarded by mainland China as a renegade province.
For many African countries, that is nothing compared with array of economic benefits they are likely to get from China and far less daunting than a number of liberal economic policies and standards of governance now required by traditional donors.
However, there is a flip side of this.
Experts are warning that these interest free but massive loans African countries such as Zambia are getting from China could saddle African economies with a new generation of unsustainable debts. Well, perhaps China is prepared to write-off these loans again.
But how is Africa paying China back for its hospitality?
This is what I personally think is happening.
China will give the Government /Zesco a loan to do ABC. The money will come in the country. China will then re-commend a Chinese company to do the job. The Chinese company will receive payment and that money will be sent back to China, as that is were all materials will be coming from.
What they are simply doing is selling us material, labour and technology.
Or else, do you think that China would agree to give Zambia a huge loan then allow it to bring the Americans to come and build, say, a hydro-power station?
The answer is NEVER, and a big one for that matter.
Still, Zambia should start looking at ways in which it can get maximum benefits from China. Basically, the relations between China and Africa are based on the Forum on China-Africa Cooperation (FOCAC), which it must be admitted, has created new opportunities and challenges in the country’s development effort. At work cost, we are yet to see. I hope we are not selling the souls of our children and grand children. GOD FORGIVE US.
According to experts, the opportunity created includes tapping into China’s experience in acquiring technology and financial resources needed to scale up the country development effort while the challenge lies in turning and regulating Chinese interests in the country to the mutually benefit of both China and Zambia without endangering the country’s social-cultural heritage and environment.
However, there is great concern that Zambia will not get the expected benefits.
A study by Naidu and Davies (2006) examined critically China’s acquisition of and investment in Africa’s natural resource sector and the short to medium term political, economic, social and environmental implications.
The main findings are that China’s engagement with Africa is full of contradictions.
For instance, African producers have been marginalized and displaced from the market because of the influx of Chinese goods. This we know, at least from the Zambian perspective, to be true.
Further, as consumers, these same individuals have gained because of the affordability of Chinese goods.
However, as China entrenches itself within production of high-tech goods, these same consumers will not be able to afford to purchase such goods as their livelihoods would be eroded by Chinese goods.
These are the challenges that the country faces. But the main challenge is in addressing them.
They’ve already sold their soul, you are too late. Tell us something we don’t already know.
Africa benefits through infrastructure development which is critical for the continent. You cannot gain something without giving something back. The world seldom works that way.
In everything that we acquire, someone is paying for that hence the saying there is no such a thing as a free lunch. Even in places were they have free health-care tax payers are paying for that. This is why when we look at developed nations, nations that are more capitalist tend to have lower tax rates than those that lean to a more socialist side. Someone has to pay for the social amenities socialism drags with it and it is the tax payer.
In short, in exchange for resources, Africa gains technology transfer as well as world class infrastructure.
cont from #2
Harvard and Oxford educated economist Dr Dambisa Moyo (Time magazine 100 most influential people in the world) covers the topic of Chinese presence in Africa in her times bestseller book “Dead Aid” under the chapter “The Chinese are our friends”.
We have sold our birthright under the guise of investment. We should wake up now as Zambians or else we shall find most of the land gone to foreign investors
Mr.Daimone Siulapwa I now understand why other bloggers insult you for not doing thorough research before you write your articles. Blaming the Chinese for their generousity to bring employment, infrastructure, and the much needed capital finance in Africa is not right. Chinese loans come with no strings attached which means you Africans yourselves have to take advantage of this by being accountable to yourselves. The mentality in Africa is that you want other people to tell you what is right and not. Look at the Chinese development itself, their country has developed due to good accountability policies. The Chinese use of Chinese companies when they give you development aid is nothing new to the world.
#5 continued
Look at the aid coming from Western countries, are you not forced to use Western consultants who take away more than half of the aid you are given ? Africans always like to be spoon feed everytime, you don’t want to come up with your own initiatives of benefitting from what other people are doing to you. China already has the famous China-Africa policy, What about you Africans? What strategy do you have for China cooperation ? nothing at all, when these guys use their strategy on you , you cry foul. This is very stupid and irresponsible of Africa, Why can’t Africa for once take advantage of another region like China by coming up with a strategy? Chinese investment is now all over the world even in Western countries not just Africa.
#6 continued
Mind you Africa investment only accounts for less that 4% of Chinese Foreign Direct Investment, so why ain’t the other countries who account for the other 96% not crying foul ? Its because they have a strategy to engage China not like you Africans who are still living in the Before Christ times. This is 21st century and u are still crying that other people are exploiting you. Bullshit indeed. Chinese companies are investmenting all over the world due to the government policy called “Going Global” or “Going out ” . Everything that they are doing has a strategy which is fully backed by their central government. Africa with so many countries and so many educated people has failed to understand how best they can engage China without been exploited ,Shame indeed.
Mr Capitalist …What about routine maintenance of this world class infrastructure ? What will it be like in 20 – 30 years time ? take a look at ZESCO , TAZARA in the case of Zambia?
#7 continued,
Chinese investment in Africa keeps on growing year-on-year . When western investors pulled out of Africa due to the recent financial downturn the Chinese actually increased their investment in Africa even acquiring companies and mines that were left by western investors .The Chinese are looking at the long term benefits in Africa and day by day they are changing the world perception of Africa from what it had been painted by the western world . To me this is a good precedent . By the way though the initial Chinese investment in Africa was in Extractive industries by big state owned Chinese companies , the current trend is showing an increase in the private companies investing in manufacturing and utilities . The private sector companies from China currently stands at 85% of…
#9 continued
The only way forward for Africa is to ;
1. Come up with a strategy to engage China
2. Take initiative in asking what they want from China
3. Demand that every Chinese company doing projects on aid in Africa partner with local companies
4. Be strict on China’s exportation of cheap labour to Africa
5. Strengthen their accountability on concessional loans
etc
So Mr.Siulapwa instead of writing complaints, try to research on the best strategy to engage China. In the 21st century there is no crying foul, if somebody fouls u , u also foul them. simple as that.
@ #8 The Lord SITH
Surely you cannot impose that responsibility on China. Was it in the legal document you signed with China?
The responsibility of maintaining this world class infrastructure is the host country’s responsibility (in this case Zambia).
TAZARA & ZESCO are the responsibilities of Zambia and not China. This is what Mr. Shaka was trying to explain to Mr. Sata at the VOA show Mr. Sata featured on.
I have never heard of a country in the world that develped because of foreigners controlling the economy.
China itself developed by its own thinking and hard work. They never dependent on foreigners to develop china.
In the same vein Zambia will develop only when we start thinking development our selves and not depending on china or Libya to think for us.
Other wise , imoverishment will continue even to higher levels.
Zambians start thinking out side the box please. No country develops by depending on foreigners for every thing.
China has money, chinese companies buy land and businesses even in europe and the US, their products are allover, worldwide. So if we want to shunt ourselves, insulate the economy,we will loose the moment. i dont think we can benefit from ‘undug copper’ still in the earth.
Mr Siulapwa, please grow up, i hope you are not on the payroll of sour grape western masters.
Mr Capitalist…. don’t twist facts around. You seem to be very good at that . If i may , i shall use your typical approach to arguing facts..Where did i mention anything about expecting the chinese to do the maintenance.? Please point out where i wrote such.
You are saying that africa benefits from the relationship by getting crucial infrastructure.
I am saying to you that where is the benefit from this in the case of Zambia. do we really need more capacity in power generation , or is it efficiciency that’s needed ? Do you think the chinese mining companies promise good long term, world class infrastructure development in the areas they operate in? RB has been saying that NWP is the new copperbelt. So NWP infrastructure should quite easily , rival that of CB in the near future ?
This is useless, zambia is no longer for zambians …already under the the power of other country pantu palya ekele alelomba indalama.
5. MUSHIPE & ASSOCIATES of ZAMBIA Lawyer: Martha Mushipe Accepted U$2,000 to pursue a debt collection case to conclusion, got nowhere with the case, promised 6 months ago to return the U$2,000 and has stopped communication and does not return the U$2,000.
6. PHILLIMON KABABA otherwise known as CHIEF KALEMBWE…
Vice Secretary of KALOMO MINERS ASSOCIATION, ZAMBIA
Took U$27,000 for stones and did not supply.
Despite the Chairperson, Pauline Mundia knowing of this, he is still Vice Secretary of KMA
All who provide life lines behave the same way. All you can do as a beneficiary is to get the best from the provider, with a view to have the benefit viable and sustainable.
the way i c it, zambia has something to offer….abundant untapped land. the western countries have been in zambia for years offered loans..made sure their own people/companies are appointed to run the show and the money went back to their countries living as massive debts while we fed on the crums falling off the table actually nothing..up to now NO significiant development in the country’s infrustructure and livehood of ordinary zambians since the arrival of donor aid/IMF but of course high levels of corruption in govt through shoddy…commissions here and there..filling up their own pockets. so its the same old sick play only that its the chinese this time around, just hope for the best…meaning good people leading the central govt and mean well..
Actually statehouse is a department of commerce & trade. Like one of the bloggers has put it, i have never heard a country that develops by giving away all its backbone to a foreign country. A good example is America-America has always depended on other countries to make themselves this powerful. China has learned it that way & has gone the same direction, they are now doing it. China or India would never have such seemingly growing economies had they not turned to the weak-Africa-zambia in particular. Albeit, china’s economy is booming & yet ours where they are ripping all the resourses for their development is going down the drain? The inverse reaction is depicted in the power of the yaun & the kwacha against the dollar. The rest, its only the traveller who knows best.Even Fundanga…
The Chinese are running away from the floods and lack of land there. Problem is we are being exploited by the China man coz he has now even started tu ntemba. It a realtionship of master and slave n we getting a raw deal out of this
Bloggers please,China is not developing because of Zambia. China is developing due to its good policies, hard working cheap labour, and for your information China is the largest benefiary of FDI in the world now. China is investing outside due to the fact that they have so much in foreign reserve which would mean that if they don’t put that forex outside China by way of investing it will lead to inflation. Am not an economist but am sure economists like Mr.Capitalist would expound more on that. Chinese develpment started out of good policies. At the time of our independence we were doing much better than China and Singapore, but where are we now ? Who are we going to blame. I really feel bad when we Africans complain like this, It will not take foreigners to tell us what policies are…
#19 GeorgeWbush.
Do you think that China will stop exploiting us if we don’t come up with a policy on how to engage them? In this century business is about a win win situation, you negotiate for what you feel is gonna benefit you and so is the other partner. You are saying America depend on other countries to make itself power so China is learning it the same way. My question is why ain’t you also learning it ? You can also use China and America to make yourself powerful, Its not their responsibility to make you powerful. The problem that we have as Africans is lack of strategy on how to go about doing business, where many Zambians have failed Westerners and Chinese have succeeded why??? The answer is always lack of strategy. China is all over the world not just Zambia for your infor.
@ #14 The Lord SITH
Yes Zambia stands to benefit greatly from increased power generation. Zambia will be able to meet its domestic demands and export the excess in essence diversifying its export portfolio which will earn a good balance of payments and provide other sources of forex. This will also help protect the nations from the negative effects of reduced forex due to less copper sales should it happen. Let us also not forget SADC is facing a power deficit due to increased economic activities making the industry viable.
Zambia benefits a lot from the infrastructure in the sense that this will enhance economic activities. Please do not pretend to be ignorant on the economic benefits of good quality infrastructure.
Mr China@22. Your r right, my problem is why cant we engage a variety of investors from all over the world in this global business than let chinese & indians monopolise everything. Its like saying anything fetching huge contracts goes to chinese or indians. We need to create a competitive atmosphere by engaging different minds. Definately, china will stop at nothing to exploit zambians as long as we are dunderheads. Chinese r good & affordable in construction of road networks, i doubt minning because i have every information concerning the financial standpoint of all these mining coroperations. By saying china is all over the world-i hope you dont mean zambians as individuals are not all over the world because that statement is to shallow-There is quality & effeciency at play,bro!
Zambia is another tragic story of a finished African nation. The chinese are digging every where for minerals and will leave Zambia with huge holes in the graound when the minerals are finished. What investiment will they leave? Go the CB and see the state of roads….ZCCM used to repair all the roads in the townships, there were street lights, medical facilities were available to all the employees,, What have the chinese given us….. I am really worried about these massive holes the chinese are digging…What are we going to fill them with??? May be we can use them as burial sites for those who will be dying from starvation in the years to come…
# 23 Mr Capitalist…..I might be wrong , but i was under the impression that currently ,Zambia or ZESCO’s power generation equipment does have the capacity to meet local demand and maybe even some excess , but it has just not been running efficiently for many years now. I thought it was a problem of efficiency rather than capacity. Please , clarify for me.
With that in mind , if you go and spend 300billion on a new powerplant , then ofcourse there will be immediate perceived benefits, but only,and only because the equipment is brand new and therefore efficient and able to run even at full capacity without breaking down. If ZESCO’s poor record on maintenance continues and the equipment is run down,then no matter how much extra new capacity you spent billions on , …
….#26 cont….it won’t be of any real benefit as the equipment will once again be running inefficiently and unable to meet demand. It would be back to square one. that’s how i understand the situation.
Most of us are out of Zambia but a lot of what we earn here is sent home, its the same to the chines in Zambia they came to take money away from Zambia not bring for what???????? they are not ZAMBIANS AND THEY WILL NEVER BE, SO WHY SHOULD THEY DEVELOP A FOREIGN LAND. Those runnining after investors are just too blockheaded to see reality. Ignorance is Bad very Bad. Chines items that are sold here in Europe are very diffrent from the Gonga products they sale in Africa, But we Africans are very happy to have them come and clean our streets ati Investment My Ass
#24 georgeWbush:
When I said Chinese are everywhere I was refering to Chinese investment been everywhere. Ofcourse we need a variety of investors other than just Chinese but the question you have to ask yourself is, before China came in, didn’t we have other investors in Zambia? If yes then the Chinese are just an addition to the ones we had before right ? FYI, the Zambian government goes everywhere in the world to lure investors but they are not coming and only the Chinese are willing to come, so are you going to blame the Chinese for coming or the government because other investors are not coming ? When it comes to special incentives that the government is giving to investors the government does not discriminate anyone. They don’t favor the Chinese, all investors are treated the…
awe ine i cant complain i cant even count how many tuma chow mein i have bonked bane! tight and nice. tusuma bane! nizeee
To me I think the most important thing that we Zambians should be advocating for is the empowerment of Zambians to compete with foreign investors. What China did was that, if a foreign company wants to start operations in China they had to partner with a local company, that way the Chinese companies were quick to acquire the much needed technology and later started operating on their own. Zambians should also be given favourable conditions in order for them to grow and compete at home. Foreign investors shuld be encouraged to partner with locals at various levels. With a proper strategy backed with policy, we will not be crying foul over investors because we Zambians will be the main drivers of our economy. China is the largest recipient of FDI in the world and yet they hv never cried foul
Good Evening
A very important lecture of debate at hand. I wish I had more time to participate in the brainstorming but it’s a warm & lovely Saturday night and I have a free ticket for the cradle creek.
As for the overwhelming influence of the Chinese investors on the Zambian, and African market as a whole, it is a sad situation but there is very little that African governments can or will do. As long as the Chinese guarantee for the free cash-flow into the continent, they will continue to get the preference they’re enjoying.
However, instead of putting our eggs into one basket, we Africans can form a strong Investments & Trade Commission similar to the European Binnenmarkt – aimed at regulating the operations of business entities within the continent. That way, African…
mmmh buti va nine chale. mwali ba formal mune! walila? my friend u have competition this year for blogger of year mune. enjoy wawumfwa iwe? deuces mune
Ba chinese bonse iseni ku zambia!!!!!!! land naibooka!! Lets face it, them people do work army of ants you know! Fwebena zedian twalikwatako ubunang’ani panono. We aint hard labour people, we are africans.
…companies can create their own regional market environment, which will make it very hard for foreign companies to penetrate. Hand in hand with investments in technology, we can also secure our future by expanding our own labour force – we can manufacture, process and sell our own products. As we do this, we will automatically dampen demand for foreign goods and create strong African cooperations which will improve our competition on the international market. Can I get a witness?
There’s no such thing as free lunch and until our people appreciate this truth, we will always be an oppressed bunch. Nations do not have FRIENDS, only INTERESTS. The world is getting to be a tough neighborhood and you’ve got to be ready to play hard ball. Although I don’t support what Mugabe is doing but at the end of the day, Zimbabweans could emerge as the most self sufficient African nation in the long run. Using Dambiso Moyo’s book could help Africa make real progress. Rwanda’s president got interested in her book. The recommendations in her book are harsh but desperate diseases need desperate remedies. Africa needs to ween itself from foreign aid or continue being irrelevant. China is still a 3rd world country and like all Africans they also wear their pants one leg at a time.
@ #26 The Lord SITH
Just because ZESCO faces efficiency problems does not mean we should not invest in the company. Should the company continue to face such “efficiency” problems, then the answer lies in partial privatization due to the fact that the private sector is much more efficient.
It’s not too long ago that the world used to laugh at china. Remember when it used to take two Chinese match-stix to strike a flame? Well, they’re not laughing now. Until a generation arises in Africa that despises handouts, we’re not yet ready to run with the big dogs and we better just sit on the porch. There’s never been a revolution on the African continent because we’re largely happy with handouts and being told what to do. A few African nations experiencing international sanctions might actually help drive the fear out of Africans. For example, African nations would rather hold their noses and accept aid with the condition of accepting homosexuality than man up and risk sanctions. We need leaders with a backbone and not a wishbone on that continent.
My good… Hold your noose and accept homosexuality? This shows me Larry, that no matter how dressed up you are, the civilization has not even reached your head. Jumping to the real subject… Zambia will sell out to anyone. Its just that others are staying clear as the country is so infected with corruption, that its very hard for honest and well meaning people to invest there. The only thing that can help Zambia from becoming a “county in China”, is a political change and a new mentality of the people. Why the late President left you with Banda is always going to be a mystery to me. He was a good man. Zamiba needs to be foreseeable in at least ten years politically to get a variety of investors. That can probably happen if Sata got his five years with HH a vise and then another 5…
Nine Chale Amen!
wow m, so true when the time comes to return the favor , you will see government tossing and turning . nothing in this world comes so easily and free. Zambia is truly a finnished country just go around in the streets and ask people if the would leave zambia for a better country if they could. more than 60% will say ” HELL YES ” . measure a country’s development by how many of the citzens are leaving the country and how many people are willing to come and work and live in the country. if the emigration is greater than the immigration. just know that something isn’t right. China has been there before zambia and will be there after they have taken your country from right under your noses. Thanx MMD for the Chinese take over * sacarcism * zambia just needs an expatriate president .[-(
i dont understand why measures to diversfy other sectors have failed.Clearly we can export hydro power,grow sugar,we have land ,water and we dont live in desert conditions of sahara and yet we still cant feed our own.Politicans want quick things that only leave us worse than we are already.Getting rid of those so called poor excuses for politicans will help remove the rot.
#39. Do I need to wackamole? Maybe not! But all things in nature pass down their genes to their offspring. Since homosexuals can not and do not reproduce where would those genes have come from? There’s no such thing as being born homosexual neither is it a sign of civilization. Do I need to dumb it down some more for you #39? Quit playing with marbles!
@Larry… It is better to keep your mouth shut and be thought a fool than to open it and remove all doubt. (Mark Twain)
“And likewise also the men, leaving the natural use of the woman, burned in their lust one toward another; men with men working that which is unseemly, and receiving in themselves that recompence of their error which was meet (or Just).” Romans 1:27. That’s just one of the many New Testament Bible verses on homosexuality. “They that forsake the law praise the wicked; but such as keep the law contend with them.” Proverbs 28:4.
By the way, my comment @#45 is my response to #44.
Nobody is forcing you to do bussiness with china.
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