Acting President Alexander Chikwanda has challenged critics of the Industrial Development Corporation to put forward their thoughts on how the IDC could be successful.
Mr Chikwanda who is also Finance Minister said politically motivated and arm chair criticism does not advance the cause of national development.
He said Government will continue to encourage Zambians to set up businesses but that Government will step in and set up businesses when local participation is low.
Mr Chikwanda was speaking in Lusaka Friday evening when he officially opened the new Madison House building on Independence Avenue.
“We will continue to encourage Zambians to set up businesses but during this period when Zambian participation is low, Government has opted to fill the gap by setting up the Industrial Development Corporation. Rather than criticize the formation of the IDC, I encourage all citizens to discuss how we can avoid the mistakes of the past and to put forward their thoughts on how we should model the IDC to be successful,” Mr Chikwanda said.
He added, “Politically motivated and armchair criticism does not advance our cause and objectives of enhanced welfare for all our people.”
Mr Chikwanda also said that it is disappointing that the insurance industry in Zambia contributes less than 2 percent to the Gross Domestic Product compared to Kenya’s 4 percent and South Africa 16 percent.
“Other countries such as Botswana, Namibia and Mauritius also have a high penetration ratio in excess of 3 percent,” he said.
“Clearly much more must be done. To this effect, I want to challenge the Registrar at the Pensions and Insurance Authority to work out a plan of action to remove bottlenecks which are hampering the growth of the industry so that insurance industry’s contribution to GDP rises to above three percent by 2015.”
And Lawrence Sikutwa and Associates Group of Companies Executive Board Chairperson Lawrence Sikutwa said LSA’s prime strategic thrust was to meet the financial and insurance needs for people in the outlying areas of the country.
“Madison House as it has been named is part of the Group’s business infrastructure development strategy and is to date the third largest office development by the Group.
Two earlier developments were a five storey office block in Lusaka Central Business District by Madison Life Insurance Company Zambia Limited and the corporate headquarters for the Group adjacent to this building,” Mr Sikutwa said.
Meanwhile, Madison General Insurance Company says the local insurance market has experienced intense competition over the last three years.
Company Managing Director Chabala Lumbwe says the local insurance industry has been relatively attractive and has seen an influx of new entrants of both local and international stature.
Mr. Lumbwe says the increased competition in the insurance sector has resulted in the flexibility of premium rates by market players.
He said Madison Insurance General has continued to grow despite the challenging economic environment and achieved premium income amounting to K240 million at the end of 2013.
Mr Chikwanda if you are really sincere in’ avoiding mistakes of the past’ then you should not proceed with setting up IDC. It is not the duty of citizens to come up with viable options, but citizens are entitled to resist that which they know does not work.
Your statement seems to be an admission that PF has failed and now is requesting Citizens to come up with strategies to develop the country.
Mmd will win in 2016
This is what happens when you bring relics into leadership, they bring relic policies along with them which are not able to answer modern complex economic policies. The other day I saw kids being taught English in Bemba in Nchelenge District.
@soulosi
whats happening? have you deflected or what are you smoking some on saturday?? or they have annoyed?
Ola @1.2 – I like that! English in Bemba, huh! That is how back down the road we are setting ourselves up in the 21st Century. We do need a breath of fresh government management desperately! Bringing MMD back will drag some of the stone age right back onto the wagon – Saulosi, get a grip!
As if they will listen to advice!
Will he listen to an alternative?
Sata is still in India bed ridden. He has not yet moved to the UK. We have not heard of him landing yet thats why Chikwanda is still the acting president.
Its gonna weeks probably a month before Sata appears back Zambia again.
Much as I may not be in agreement with everything the PF is doing it is wrong as Zambians to think that those who are in Govt should do the thinking and planning for all of us. We elect politicians whose duty is mobilise the country’s resources both human and material in order to create a better Zambia for all. Politicians like the rest of us are equally Zambian citizens. A challenge like this should be taken positively. A good exam can have “yes” or “no” as an answer but what matters is the reason behind the given answer. I equally don’t believe in criticism without an alternative because it leaves us at the same place. Mr Chikwanda is right, those who are saying the IDC wont work should suggest and outlinee what will work. This is not soccer…
The alternative is to scrap the rubb1sh IDC- off, as simple as that. Avoid 1960s failed policies. Sata is a relic and now bringing relic policies.
Alternative: Zambia does not have the requisite underlying support for industrialisation. Spend on R&D and not running factories, u neither have the expertise nor acumen at the moment. ba Minister wesu, do not spend money on the IDC, take it to the strengthening of the national system of innovation; keep building more schools, strengthen research in the main universities, and develop policies that will promote linkages in and out of the mining industries for diversification supported by innovation & research driven by the industries’ connection to universities & other centres of researc. This is what Korea an example of government-led indusrialisation did. We want to climb the tree from the branches, awe. You industrialise not with money alone, human capital, with knowledge…
Alternative: In addition to fertilizing R&D, investing heavily in education, streamlining the ‘rules of the game,’ and invariably remunerating professionals, think of the impediments of industrial development and growth as being low liquidity and capitalization. Tweak this, just a notch up and see what Zambians are capable of.
Contact me for more info.
Our advise Mr Chikwanda is..STOP!!!! to avoid making mistakes STOP!!!! Stupidity is doing the same thing that never worked and hoping to get a different result.
best advice!!!
GOOD ARGUMENT, MADALA!
“RATHER THAN CRITICIZE THE FORMATION OF IDC, THOSE OPPOSED TO THE IDEA SHOULD COME FORWARD WITH IDEAS ON HOW WE COULD AVOID THE MISTAKES OF THE PAST UNIP ERA AND PUT FORWARD PROGRESSIVE THOUGHTS ON HOW WE SHOULD MODEL THE IDC TO BE SUCCESSFUL LIKE ELSEWHERE IN THE WORLD”.
PHD (INDUSTRIALIZATION)
we are saying it should not even start you imbercile.
This whole idea of IDC must be stopped forthwith! its not worth it as it will be a big drain on our limited resources. i doubt the level of education of this fragile tired man. people have come and explained why this whole idea will fail but you still want the useless project to go ahead. There is no other way of tackling this senseless idea PF apart from putting a stop it altogether!
I.D.C = Vehicle for wanton Nepotism & Corruption.
Kasama airstrip anyone?
meant KASABA Airstrip anyone?
comedy getting better
It failed, we dont need it PERIOD.
Chi Chroloquin, improve in the way you organise ideas in that chi head of yours…
Tu yanda development Ba dala, tuyanda inchito…
Where do you think development will come from without creating an industrial base….have you ever been to junior secondary….
I can see sense in the PF now…2016 no under five…
These m*d men cant learn from history? The idea failed in 1973 under his leadership as Minister of Finance. He wants to replicate it the failure again. This is the problem of having archived and irrelevant being brought back to the fore! May God save us
Mr Chikwanda, please translate your words into actions!
There are many alternative good business opportunities available for Zambians besides the failed KK era ideas.
I have some. How do I present these to Government? Please be specific!
Does he think there is no alternative?
Good afternoon
The man is not questioning whether or not to proceed with IDC but asking for alternatives on how to model it successfully.
He has given examples of how our friends in South Africa, Namibia, Botswana and Kenya have successfully managed their resources. What about Zambians? You have failed to set up your own businesses to keep your economy running. When the government decides to step in and set up industries to help you manage your copper which you have failed to do since independence, you protest.
To say it plainly: nothing comes out of nothing! How can you gain if you don’t venture? To cut the story – critics better step aside (or continue critcising) but let those committed do this thing.
@Chale, it’s just sour grapes for some of these characters. If the same idea emanated from one particular president of one particular party, the same hoodlums would ve been praising the establishment of IDC. How ironic.
Where one earth have all govt business under the president Armpits,only a dictators do that like,Gaddafi,north Korea,Mugabe and sata .if politicians put their hands off ,then the IDC might succeed because it’s failure can’t be associated with the president.mr chikwanda the best would have been to allow public debate before any initial progress but you claim to have allocated money,chairman,.so what input from the public that will make u change course.thats stupid.
Where has he been all along…is he on medication?
When Sata was appointing Chikwanda, he had only one thing in mind, to promote:
(1)Nepotism, (2) Cronyism, (3) Protectionism.
Chikwanda is not listening from critics, if he was pining his ears back, he would pick up what critics are defending. IDC is mere pronouncement without any Framework, Blueprint or Structure.
And if anyone did ask Chikwanda to produce such documents, he is going to pothole himself, cause he has not prepared or done diligent homework.
He says IDC will cover only Toxic Assets, but he has not given details or an Exotic Financial Instrument for these loss making companies that IDC will manage. All that they have is funds to set up IDC and no one knows the aftermath, cause Sovereign Wealth Funds are very questionable, coming from the BOZ Reserve Bank.
Cont…
Unfortunately, you cannot practice “Reverse Engineering” in the business-world but rather take a Progressive agenda to generate Wealth & Jobs, backed up by Creativity, Inspirational, Ingenuity and Financial Management & Operational Management.
If you have no Financial Management and Operational Management, your business will go down, it does not matter if the products services are sale-able.
Now this is where (1)Nepotism, (2) Cronyism, (3) Protectionism as far as IDC is concerned. They know who will be appointed and not on merit to run IDC.
It will another venture to raise funds for PF . This is how KK raised money from parastatals to build the UNIP HQ which has now become government joint, housing ministers.
Cont..
Meanwhile, Zambia has become a nation that is paying civil servants salaries using a Government Credit Card, because money has been misappropriated through a bloated government & by-elections at the disadvantage of Junior Civil Servants going without salaries for months.
Why can’t Chikwanda look at these emergency issues such as Unpaid Salaries, Unpaid Pensions, Unpaid Benefits and so forth? We have people going to grave yards because due to depression and despair for not getting paid government pensions for years.
Spot on! !
Alternative is to do away with it period
The alternative idea, Mr. Chikwanda, is to get rid of the catastrophe of a govt we erroneously elected. The PF is the greatest obstacle to Zambia’s development. Their performance over the last two years demonstrates how out of depth they are with governance. They have shown us exactly how things shouldn’t be done. Even if the idea of IDC were a good thing and it isn’t, but the PF is scarcely the vehicle that would produce positive results. They are very good at creating problems, not solutions, fluffing around, and never getting anywhere, they vigorously pursue petty issues that stalls development. There isn’t a single thing they have done that would make you proud to be Zambian.
Seriously, does this man need to expose his ignorance like this?
I thought mr chikwanda was a man of sound mind,anyway this is what u get when you recycle manpower,this man failed as finance minister under kk,he shld be above politics and advise the country on the way foward.zambia is broke and cannot afford bailing out failing companies like was the case in usa.I suggest an alternative resign and let a young man with 21st century ideas take over from you
Now 50 years after independence, why should we be interested in repeating experiments that failed a thousand times many decades ago? Are you admitting failure?
The Zambian people voted for you because you promised them that you had fresh ideas regarding job creation and economic growth. You didn’t tell us that you were going to go back into UNIP’s achieves and retrieve certain archaic ideas that you still cherish and table them as an agenda for today.
When MMD came into power, they had fresh ideas. They may not have been the best of ideas, but they were definitely new ideas. Public transportation gained a fresh look, so did Agriculture under the late lawyer made economist Mundia Sikatana etc. Are you guys crazy? If so resign.
I agree with you. These chaps came in without plans, but mere 90 Days Miracle Gospel.
Hon Chikwanda The alternative is there just strengthen the Zambia Business Development Agency………… Empower it with human resource that are innovative bring in consultants from Malaysia, Ethiopia and many other countries that are progressive that we can learn some thing……… in this country we have a huge human resource that you policy make have failed to use.
@7, Lawrence has reserved Kaseba Strip after the departure.
PF can thank God that, as of now, there is no formidable opposition in the country. Consequently, they can afford to continue mpikanizing and muchinganizing and hope to still sail through the cracks of Zambia’s faulty electoral system. Notwithstanding, they are better advised not to leave any stone unturned, in fine-tuning their rigging strategy, come 2016.
They risk facing a highly disgruntled electorate, which factor could render even a finely-tuned rigging strategy impotent. Under a 50% plus 1, PF’s nightmares could quadruple over-night. PF political base is seriously being eroded, thanks to an irate electorate and a badly fractured opposition. PF’s own lack of direction is their undoing. Come 2016, a self-inflicted wound may spell PF’s demise.
Meant to say: “PF’s political base..” apologies.
Define the investments the investor and structure specify responsibilities for investments and appraisal including the clusters to be invested describe the roles and respobilities of the board and staff in IDC assign responsibility and risks for assets allocation describing the overall investments objective with constraints and risks mgt at the same time establishing performance measures and accountability of the IDC given the investments defining structure of governance and responsilities of the IDC the line ministries and the companies managed
Given the level of wealth inheritance for Zambians and lack of capital its a workable solution to complement private investments as seen elsewhere avoiding
@@ Jonathanmhango Financial Analyst
There is something called; comma, full stop, semi colon in the English language. Otherwise, reading becomes worthless and pointless; even if you have valid points.
Take your meds
negatives of the past whilst learning and tapping into the skills of Zambians trained and learning the innovation to cement the economy long-term in complement to where to where the private cannot IDC can also be a way to help Zambians learn to lead and turn around unlike the current participation and ownership in the sectors learning also the new Rise of the distorporation
“A mutation in the way companies are financed and managed will change the distribution of the wealth they create”
Its clearly the view world over that ministries provide research and policy and the IDC manage and run the state enterprises providing the much needed value in a synergic well moving the economy forward to potential…
@@ Jonathanmhango Financial Analyst
There is something called; comma, full stop, semi colon in the English language. Otherwise, reading becomes worthless and pointless; even if you have valid points.
How many sectors of the economy do we have in the country what is the private and Para contribution to GDP what has been the growth in all sectors towards our potential what is the participation in entrepreneurial by Zambians and foreigners how many companies have been created and cemented in the past as a factor of GDP by who and what is the trickle to the wealthy of the nation and the values In energy mining manu trans healthy utilities’ hotels and tour services and education how many are Zambians led and long-term cemented listed and incorporated not small SMEs We need to develop all sectors and have our own Novartis and other world class etc. IDC is a vehicle to uplift no one…
I am writing this to people managing Mr. Sata. Please save Zambia from total destruction. It is clear the country is not being ruled properly. We have Trafigura, Lower Zambezi , GBM, wrong nullification of parliamentary seats , Chitimukulu, RB’s tramped up charges and case,Satas unplanned trips abroad, Satas obsession with bald heads, DBZ case, Satas not addressing the nation in years, unbalanced cabinet and appointments to government , botched constitution etc etc. All this has happened in two years Surely these are not good signs of a working government. Right now there’s very low morale in Zambia. And now Chikwanda is saying people should come forward with proposals on how IDC should work? How about not having IDC altogether? And the people managing Sata think everything is okay?…
Seeing the potential in skills and resources in each district taking the lead to initiate attract and partner venture promote and support is the way if private investments was so handy most districts towns and provinces would be now a story to highlight not to go the IDC is some sectors Because people have song the wooing investors for so long sometimes its better to take the lead initiate create and pass on either in equity or venture to locals and private to run for the foreseeable future creating some wealthy for others to tap in with skills and mind .The notional private sector capitalization whether listed or not in Zambia is negatively skewed in sectors and is not okay
Its also important to do a thorough research of opportunies on our investments in sectors in the provinces and districts and knowing the SWOT and aligning the funding methods and promotion either IDC or private direct investments optimizing and making use all available opportunities to spar our national development in all cylinders making use of the good arms of Gov already in place and tailored to support particular investments types ZDA OPPI etc
Its also important to not that in some countries insurance companies, universities and pension schemes have been used as vehicles of cheap capital to finance and retain value within the economy spilling over to other sectors in complementary
SECTORS:
Energy and Fuels
Hospitality and tourism
Manufacturing and Processing
Mining and Natural Resources
Professional Services and Financial services
Health care and Insurance
Agricultural and food industrial
Football and sports sectors
Construction and infrastructures
Education and skills development
So no what is the notional capitalization of the above in Zambia whether listed or not and what is the private led and Gov. in the same What is the proportion of that capitalization/investments against the potential and the consequences of policy as to either FDI IDC or in between or together “A portfolio type”
With the development of all sectors, unemployment in Zambia and poverty can be…
This is rather a strange way of letting people participate in generating the ideas. Firstly IDC is a testimony of failure itself. With the current crop of leadership we have this is a bit re idea. Doing the same thing expecting different results is not being wise. You suggest setting up a lame duck cooperation was past record you know and then you ask those critiquing to give alternatives. Just create environment for private business.
certain sectors of the economy may need an approach like IDC and others Private and others PPP in complementary
Certain once rich sectors like dairy meat processing timber including agricultural have since died with no private investments coming to rescue it will be the duty of government then to actualize among them the fishing empowering locals to turn around and create success stories saving many the masses in jobs and live hood A better and carefully structured IDC will help to make a return on the investments and create further values and wealthy within the economy moving aware from thinly crowded sectors and there by helping to diversify and add onto the employment numbers //…
Remember also that firms and multinationals have a tendancy of staying long where initially set up and grow either horizontally or vertically across nations whilst retaining most of the productivity at the so often called “head office or Hub” in a spatial way Similarly if economies are in cyclical structural or frictional as a result of fall out in outlooks they tend to shade and contract back to their initial solidified bases as a risk management and win win situation leaving the Zambian economy poorer and stagnant at Infancy always since independence. Its therefore important to root our own and partner were we can and martial the economy and create chain values in…
Avoid also the notion that returns on Zambia’s resources is only in taxes whether VAT or Corporate or Mining thereby passively managing the economy rather to the contrary
Returns are in taxes and capital gains and therefore Gov. must position itself to actively participate with multinationals and private in complementary to the full maximization of the economy potentials
Its also time we started creating sovereign funds and endowments funds and venture funds to help skills and people so as to realize their full potential
Most Zambians are poor at birth and only capital empowerment by Gov can kick start especially for those without a base helping them realize their potentials…
Why asking now?
Its never too late We have seen towns fully developed by Gov. in roads schools hospitals sports facilities and malls including sites for services and industries and then given to local entrepreneurs to run and operationalize whilst the councils or is it municipalities recover the investments in rates royalties including taxes but above all that development done by Gov. benefits more the locals than itself saving it time and effort taking about development and unemployment
Gov.. takes the lead to develop a town and its amenities recovering the investments in rates and taxes otherwise towns that could have not developed hundred yrs. to come
Traditional private is slow and…
Lastly Zambians are generally not legacy entrepreneurs and classical business men unlike colleagues near who have gone through this phase of business start ups and modeling by their Gov. empowering them were they are as private investors to even attract our attention as investors
The legacy need to change and good for those already but many as seen will need a carefully crafted IDC if ownership and entrepreneurship in towns and cities will be actualized in complement to private with key recourse to key economic indicators that enshrine sound economic performance without stiffling
The list of corporations and companies that need to be established includes Mafuta Oil Marketing Corp, Kula Engineering and Construction Corp, Maluba Hortculture and Flower Corp, Chayi Beverages Corp for Coffee, Tea, Choolate, etc. Can someone extend the list? I am suggesting Indaba to deal with the prioritization process.
There has to be a formal investments justification like the private will do giving recourse to best practice in recommending investments best only on facts and faithful researched opinions so as to avoid ichipante pante given that the IDC in time capital and resources cannot achieve all Priotising of mutually exclusive and complementing investments will be idea over an horizon not for political expedience creating long-term sectors with returns over the horizon at the same time teaching our people financial literacy and financial behavioral skills unlocking them from the captivity of past curriculum that have made them a slave in themselves learning from successes of our colleagues
now that lusaka times is pro Upnd,it’s just wise that Mr Sata disolves parliament and cal for General elections,what else with his key men like chikwanda beging for developmental ideas from Upnd incognital. wapya munzi.