PRESIDENT Micheal Sata has said Africa is being used as a conduit by multinational companies to externalise its resources to off-shore destinations and rendering it lagging behind in terms of development.
President Sata said this when former South African President Thabo Mbeki leading a high level panel on illicit financial flows from Africa, called on him at State House yesterday.
President Sata reiterated that the biggest problem facing Africa was unemployment which was a contributing factor to the current problem of illicit financial flows retarding the continent’s growth.
“Once we address the problem of unemployment, Africa will not be used as a conduit to externalise its resources. For a long time now, rich countries have been plundering our resources and building their countries and they are now rich than us in Africa,” Mr Sata said.
He said most multinationals operating in various sectors around Africa were not African owned but belonged to foreign countries and were siphoning various resources from around the continent to offshore areas.
President Sata hailed the Mbeki-led team in its efforts to counter mass externalisation of cash and urged the group of experts meeting in Lusaka to come up with tangible results that would help redress the problem.
“If we create employment then our people will not be used as conduits for the externalisation of resources. There is no company in Africa that is worth talking about. I congratulate you for taking this initiative and it is good that you working with the Economic Commission for Africa in this matter.
“I am grateful for your coming to fight for mother Africa. I can see that you haven’t retired. When you were the President of South Africa you were fighting for the continent and you have continued and if there is anything that Zambia can do please let us know,” he said.
And Mr Mbeki said Africa was losing US$50 billion through illicit cash flows and that the figure was not equivalent to donor aid that the continent received.
Mr Mbeki said recommendations from the proceedings would be communicated to the ongoing G-8 summit in Ireland and the European Union Members of Parliament, who had taken keen interest in the matter.
The recommendations would also be availed to Ministers of Finance in Africa to map out a strategy on how the issue could be tackled.
“If we can manage to retain the money that has continued to be lost through illicit cash flows, we would be able to develop our continent,” he said.
He said stronger methodologies were being applied in addressing the problem and these would be tabled during deliberations at Lusaka’s Pamodzi Hotel, where experts from the financial sector, non-governmental organisations were meeting to deliberate.
He said there was need for increased regional consultation with all key stakeholders in tackling the issue.
President Sata and Mr Mbeki shared a light moment before engaging in discussing the issue of illegal cash flows and posed for a group photograph at the State House grounds.
It is not about ‘rich countries’ plundering your resources. The issue is tax avoidance and tax evasion by companies. Even the rich countries like the USA and UK are victims. And there’s no correlation between solving the unemployment problem in Africa and tax evasion or avoidance! Tax avoidance and tax evasion by mining companies like Glencore in Zambia wont magically disappear simply because Sata has reduced unemployment in Zambia from over 50% to 5%!
@Goncalves, I salute your message. Its a diversion to think that unemployment has caused tapping of Africa’s wealth. Its about taxation evasion and tax avoidance. These two are the top most. The other one is corrupt African brains. Many people in critical positions in govt and companies are corrupt and easily corrupted. Those who come to tap resources and finances use every trick and deceptive tricks possible, many of them using small prints in contract documents. But they also use plain means to steal. We are not roburst enough and we do not change they shall ever milk us. They use Trusts to hide the loot and they hide the loot in tax havens. They also over charge on plant and machinery, through that they loot. ITS NOT UNEMOYMENT! Open your eye and see more.
Therefore, the need to highlight such issues so that these very companies are made aware that the tide in Africa is changing, and that we are drawing nigh to the day that we will cling on to our own resources and develop as a continent, as one people and not as individuals… Africa need such leaders like Sata and uncle Bob who are not afraid to challenge the Washington consensus rhetoric about Africa.
Peace to mother Zambia!
It is the message which is important and not the semantics. MCS is correct and he needs support form you especially if you are Zambian and ‘educated’ (have been to school). Do not wait for your political party to form government for you to contribute positively because it may or may not happen.
WHAT SATA HAS SAID IS VERY TRUE. AFRICA NEEDS BIG FINANCES IN THE HANDS OF AFRICANS THEMSELVES TO AVOID THE WEST AND ASIAN COUNTRIES EXPLOITING AFRICA. AND THIS CAN BE DONE BY EMPOWERING AFRICANS TO OWN BIG BUSINESSES. RIGHT NOW BIG MULTI-NATIONAL BUSINESSES ARE OWNED BY THE WEST AND ASIANS COUNTRIES WHO CHEAT ON PROFITS TO AVOID OR EVADE PAYING TAX. MOST ZAMBIANS ARE NOT ANALYTICAL AND DON’T THINK- THEREFORE, THEY ARE DESPUTING WHAT SATA SAID. IF IT WERE A WHITE MAN WHO SAID IT THEY WOULD APLAUDED HIM.
Bwana Sata do you have the expertise,the equipment and the financial firepower needed to run such homegrown giant enterprises? If not then HUSH bcoz beggars can’t be choosers and remember you’ve failed already with Zambia Railways.
This is the same thinking that has kept us poor forever…the belief that we are hopeless and poorly endured when in actual sense we live on the world’s richest continent with abundant natural resources…its all in the mind my dear fellow-this mental slavery believing that others are better then us-the same others who are poorly endured in regards to us (hence we do all we can to corrupt the system so as to be ‘happy’ and to protect our ‘own’)…all it takes is a leadership that will meet the challengers from the West and China and really think SERVICE for Africa/Zambia for all people within our continent/country by being faithful and putting in place ideas that will stay strong for decades to come…
yes , well said. We must monitor the cash flows. Africa is rich in resources and if the they money they attract is not fully externalized , the continent can develop.
Peace and Prosperity to Mother Zambia.
Please Bloggers Am just asking to be educated. The headline seems to be amis. I dont know ether its because its late or just elucinating. Isn’t a conduit a connection through. so maybe it should have been Africas laxed policies being used as a conduit meaning a means through for Africa losing money not that Africa in its is the conduit. Am not sure but somthing is wrong with the dictionary that was used, It b.loody as confusing as pointing a gun at a civilian and puling a trigger and saying he was in the wrong place. Please no harm just wanting advice!
Good point though only if it can be managed!
WHAT SATA HAS SAID IS VERY TRUE. AFRICA NEEDS BIG FINANCES IN THE HANDS OF AFRICANS THEMSELVES TO AVOID THE WEST AND ASIAN COUNTRIES EXPLOITING AFRICA. AND THIS CAN BE DONE BY EMPOWERING AFRICANS TO OWN BIG BUSINESSES. RIGHT NOW BIG MULTI-NATIONAL BUSINESSES ARE OWNED BY THE WEST AND ASIANS COUNTRIES WHO CHEAT ON PROFITS TO AVOID OR EVADE PAYING TAX. MOST ZAMBIANS ARE NOT ANALYTICAL AND DON’T THINK- THEREFORE, THEY ARE DESPUTING WHAT SATA SAID. IF IT WERE A WHITE MAN WHO SAID IT THEY WOULD APLAUDED HIM.
CAT POWER, YOU ARE 101% RIGHT WHAT SATA SAID ARE MAIN REASONS FOR OUR CONTINUED POVERTY.
You beg them to invest on their terms. No legal framework to protect or benefit from your resources and then wonder why the investors do what they do. Wake up first. Shut down zambia development agency or do a complete overhaul of it. Implement a protective working legal system. First look at doing it yourself before considering investors.
Its competition and in it everyone wants a lion’s. The toughest will get that big share and if you remain weak with weak institutions, weak, regulations and corrupt minds, then the tough ones will ever keep grabbing the lion’s share. We shall ever remain with crumbs and only ever complaining. If a small country Botswana can be so clever and jealously protect its resources why cant we copy and protect ours. No diamond is ever stolen in Botswana, Why should you tolerate theft of copper, cobalt, etc in Zambia?…! Simple close monitoring from point A to Z is all we need. May be the unemployed can be employed to monitor movement of goods and finances to and from these companies. Is that what we can fail to do? Its just our mental sets as a people. We can curd the taxation leaks.
THE PROBLEM IN ZAMBIA IS WHO IS GOING TO MONITOR THE RESOURCES? WHOEVER IS IN CHARGE OF MONITORING WILL STEAL.
Good to see you Mr. Mbeki. I missed you! Good bless you, a great leader!
He spoke so nicely BUT why failing to do what he is worried of??
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