GOVERNMENT has refuted accusations that it has been inconsistent with its economic policies saying all adjustments made previously were necessary as they were meant to protect the interests of Zambians.
According to a statement released to the Media by Nicky Shabolyo, the Press Secretary at the High Commission of Zambia in South Africa, Minister of National Development Planning, Mr. Lucky Mulusa said that there has been cases of insincerity on the part of some investors and that Government has had to respond accordingly in order to safe guard the nation.
“All the adjustments to policy should be seen as a way of trying to align things for the benefit of the people. These policy adjustments in the past were in response to the insincere conduct of some members of the business community. There is no way we can just wake up today and introduce a new law which we again change a few weeks down the line. All our actions are informed by how businesses in the country behave,” Mr. Mulusa said.
He gave an example of businesses which either closed shop or simply changed names when their tax holidays and other incentives were coming to an end so that they could avoid paying tax or being subjected to other measures.
“It is these same businesses that go out on a crusade to speak ill about Government and sponsor various individuals to attack us when they see that their evil plans have been curbed. Before we condemn government about what we see as policy inconsistencies, we need to ask what informed Government to take such action.”
Mr. Mulusa was speaking as guest of honour yesterday at the ‘Invest in Zambia Business Forum’ organised by the Zambian High Commission in Pretoria in conjunction with the Zambia-South Africa Business Council (ZSABC).
The well attended event held at Sandton Convention Centre in Johannesburg was sponsored by Liberty.
The Minister said Zambia was realigning it economy and noted that the country was ready for business but “it should be clear to all those interested that we are not, at the same time, open to abuse.”
He bemoaned the collapse of Zambia’s industrial base built over 27 years which he attributed to the privatisation exercise through which he said some unscrupulous investors came and stripped companies of their machinery and left them as warehouses to store imports from South Africa and elsewhere.
“I acknowledged the important role that South Africa plays as Zambia’s largest trade and investment partner, and at the same time, lament that for over 10 years, Zambia has only been able to capture less than 10% of total trade volumes between the two countries. What we have seen over the years is that this has not worked for us as some investors only rip, and do not plough back into the economy. What we are looking for are sustainable partnerships, and not relationships that leave our country worse off,” the Minister said.
He urged the ZSABC to promote Government’s agenda of fostering inclusive business models that ensured integrating local communities in the supply chains and support the growth of local industries in all sectors of the economy.
Mr. Mulusa urged South African investors to quickly get into Zambia before they lost opportunities to other countries such as China which were in a hurry to do business with Zambia.
He also appealed to investors entering Zambia not to engage in activities, such as casualisation and others, which exploited the country and its people.
He said Government has realised that it was more expensive to produce a particular product in Zambia as compared to other countries pointing out that this, and other issues that would help bring about a conducive environment for business, were being addressed.
“Our Government is keen at enhancing private sector led growth and has been working hard to create an enabling environment for business, as evidenced by the enactment of the Business Regulatory Act of 2014 that was meant to create a cost effective and business regulation framework in Zambia. As a result of our business environment reforms, Zambia is now ranked 8th in SADC and 4th in COMESA in terms of the Ease of Doing Business. Furthermore, Zambia is ranked the 8th most competitive country in Africa on the Global Competitiveness Index,” Mr. Mulusa said.
He said despite all the favourable business elements that Zambia had in place, the country had taken long to develop because of the poor policies which it previously pursued while other policies had been mishandled.
Zambia’s High Commissioner to South Africa, His Excellency Mr. Emmanuel Mwamba concurred with the Minister on the issue of privatisation saying the exercise failed to yield the targeted results because most of those who bought off companies were only interested in satisfying their selfish desires.
Mr. Mwamba said the High Commission devised the ZSABC as a platform from which to engage captains of industry so that amicable solutions for the two countries could be found.
He also pointed out that there was trade imbalance between Zambia and South Africa which favoured the latter. “There is no way that South African stores operating in Zambia should continue importing into Zambia, products that are readily available in the country.”
And South Africa has said that Zambia was a strategic market and partner for South Africa, and vice versa, because of the potential for enhanced economic cooperation that existed between the two countries.
Chief Executive Officer for Trade Invest Africa, an initiative of South Africa’s Department of Trade and Industry, Ms. Lerato Mataboge, has noted that total trade between the two countries has been showing positive growth from R19.9 billion in 2011 to R31.9 billion in 2015, making South Africa Zambia’s main trading partner in the SADC and Zambia, South Africa’s fourth largest trading partner in the region.
Ms. Mataboge said South Africa was conscious of the trade imbalance which supported her country and that this needed to be assessed and addressed. “Key to this will be identifying and establishing cooperative mechanisms for assisting Zambian businesses seeking opportunities to supply in the South African market.
Our aim as a government is to increase the levels of South African investments in the Zambian economy and the rest of the Continent through targeted support measures.”
Two such measures are the recent creation of Trade Invest Africa as well as the unveiling of the Guidelines to Good Business Practice for Doing Business in Africa, both of which were launched in July this year.
Trade Invest Africa supports South African businesses looking to invest in the rest of Africa as well as those looking for export opportunities on the continent.
She said Trade Invest Africa will work with partner countries to facilitate sourcing of goods from the rest of the continent into the South African economy as a way of contributing to increasing the levels of intra-Africa trade and intra-African investments.
Ms. Mataboge pointed out that Zambia today was one of the promising emerging markets in the world and “I strongly urge the South African business community to take advantage of the advanced economic and diplomatic relations and seriously consider investing in Zambia. We commend the Zambian government for ensuring that the conditions for foreign investments are continuously being improved upon.”
ZSABC chairperson, Mr. Charles Kalima urged businesses to join the Council so that they could be assisted with establishing themselves on the Zambian market.
Mr. Kalima said there was need to develop an African concept where countries on the continent traded among themselves in order to foster development.
South African Chamber of Commerce and Industry (SACCI) Chief Executive Officer Mr. Alan Mukoki said Africa should realise that agriculture, and not activities such as mining, was the major contributor to economic growth.
And during a panel discussion, Barclays Africa Region Chief Executive Officer, Ms. Mizinga Melu said Barclays Bank has been in Zambia for over 100 years because it had found Zambia to be good for business. Ms. Melu said Zambia had 19 reputable commercial banks operating in the country because they have found the environment conducive.
She said the freedom for investors to externalise profits was a big incentive that Zambia’s potential investors should seriously consider.
Massmart Holdings Chairperson, Mr. Kuseni Dlamini said Game Stores and the recently opened Builders Warehouse, which are subsidiaries, have performed exceptionally well because of the favourable business environment in Zambia.
Zambia Energy Forum Chairperson, Mr. Johnstone Chikwanda told the audience that with the energy deficit in Zambia, the country had a lot of opportunities for producing energy from various sources that the Government had identified.
Others who spoke on various panels were Ms. Zandile Shabalala, ZSABC Vice-chairperson; Mr. Michael Njapau, Head of Business Development for Liberty Life Insurance Zambia Limited; Mr. Brenden Alexander, Head of Business Development Support for STANLIB; Mr. Mduduzi Nene, Africa Divisional Director for Liberty Health; Mr. Kennett Sinclair, Partner from Exeo Capital; Mr. Ewout Van der Molen, FMO Southern African Regional Representative, and Mr. Ashley Petersen, Senior Business Development Manager from South Africa’s Industrial Development Corporation.
The minister is right this government has been consistent with its inconsistencies. It is championing the illusions of the disillusioned. The majority of whom are kaponyas. How can one be consistent when he has no vision?
Mwamba is lost, he always want to be on camera if he not one holding it. Embassies have a secretary for trade and such, this was their forum. MMD Lunatic Mulusa was more than enough to represent the inconstant dilutional PF government.
PF are chronic flip-floppers because of their lies. They now want electricity tariffs to be increased by 300% but when riots break out in slums Lungu will backflip and cancel the increase. This is the nature of liars, to test the waters and see how much acceptance their lies are getting. When there is resistance, they will flipflop and claim that they were protecting Zambian interests or the poor. But why can’t such assessments be made at the inception stages of policies so that consistency is maintained? The real point is that PF are incompetent to run an economy.
Here are points of flip-flopping by PF since 2011:
~ exchange controls including SI 33 and 55
~ taxation of the mining industry that raised MRT to 25%
~ attitudes to Chinese investors who became “infestors” and are now saviours
~ electricity tariff increases of up to 300% charged over 3 months in early 2016, then cancelled and now to be reimplemented
~ fuel subsidies removed twice in 2012 and 2016! How is that even possible?
~ misguided agricultural policies where inputs are stolen yet agriculture is supposed to be a priority
~ Eurobonds raised to sort our railway network and power supply were instead used on cheap compound roads and the rest stolen.
I can go on ad infinitum, ad nauseum.
Can anybody tell me why all the Ministers are Over Weight?? Is it because they just Eat and Talk?? I Guess non of them have ever done a hard days work in their Lives!
Mutati has been consistently saying exactly the opposite of what Mulusa is saying. It seems this is a very uncoordinated government. I know RB has a bigger part and influential ministries. Kaponyas in PF has been left with ministries were they don’t need to think. (Mumbwe atile imashi noku mububa sha mu buba)
@Nostradamus, I truly don’t subscribe to the PF stupidity but I beg to differ with you on this one and I loathe Emmanuel Mwamba anywhere. But having served UNIP and MMD Governments in different Diplomatic capacities, including being a Trade Counsellor at different Zambian Missions abroad, the presence of an Ambassador or a High Commissioner at such high profile meetings is of great importance. So Mwamba’s presence at that forum was not out of choice but duty demanded that as long as a senior government official of the Minister’s caliber was there, he too must be there. I am sure my contribution can be supported by my colleagues in the Diplomatic family including brother VJ. I am sorry to differ with you.
Where are the zambian business people? Mulusa & Mwamba are GRZ, Melu is BBA, Chikwanda’s EFZ is lobbyist, Njapau’s liberty isn’t zambian. Already that’s an imbalance in itself. Why host this in SA when we could have used those rands here.
Do we ever have South Africans (or anyone) asking Zambians to invest in there country.
Oh! please learn: Kindly woo and nature local investors first before you look outside the window.
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For how long has this country looked outside for investors who are in turn promised tax rebates and lenience at the expense of the Zambians. Government Officials including the presidency have taken countless tours in search of investors from Asia, Europe, America and what have you, since late LPM. How many programs of policy in nature have the Government undertaken and watched die a natural death before implementing policy shifts to accommodate failed laws and policies? Now listen up, no amount of trotting to other countries for investment help will liberate Zambia. Invest in local businesses and enspirit local entrepreneurs to drive the investment…
… agenda in the nation. Encourage local/foreign partnership investment. Be focused and patriotic.
Im asking :- What abominations/sins/taboos did we commit to be CURSED with such leaders?
KK for 27years
FTJ for 10years
RB
LUNGU & his PF00Ls for 7 years
Why did the Britons join us to NER in 1911? Why, why why? We are doomed by this curse & need to find the root cause!!
Problem with PF ministers is not knowing the audience. That’s a wrong group to defend your pf government “inconstancies” or The Post Newspaper changing name. And please it was wrong forum to announce changing laws to target Mmembe, when South African companies have been changing business names to avoid paying taxes or liquidation. Most of those business people don’t even know president Lungu by name, why tell them about PF personal fights?
Nostradamus while I get your point and agree with you on these Ministers not knowing their audience and pitching the message correctly, I think when they talked about businesses changing names to avoid tax obligations they were not referring to the Post and Fred but South African businesses (especially clothing and furniture chain stores) which in the past would close shop and return rebranded under different names to take advantage of tax holidays then given to new market entrants.
Thank you blabla for the clarification – I am surprised Nostradamus didn’t get it — it is a problem when one is so one dimensional. The problem of changing names by South African companies in Zambia to avoid paying tax is a serious one, and I would have appreciated a response from the South African business executives present. Where is Supreme Furnishers? Did it go under and new South African furniture stores sprang up in Zambia? Also, South African companies participated in the plunder of Zambian companies during privatization. This was conducive to creating a healthy business environment in the region.
ITS HIGH TIME WE CHANGED OUR STRATEGY AND START SUPPORTING OUR OWN GOVERNMENT. ZAMBIA IS OUR COUNTRY AND WE NEED TO OROJECT IT WELL. NOT ALL THE TIME TALKING ILL OF OUR OWN LEADERS. SA ITSELF HAS ITS OWN TEETHING PROBLEMS. BUT YOU DONT HEAR SOUTH AFRICANS GOING TO LENGTHS DENOUNCING THEIR LEADERS, INSULTING THEM. NO. LETS DEFEND OUR HOME. IF YOU HAVE BETTER SOLUTIONS COME OUT IN THE OPEN AND SHOW US WHAT YOU HAVE. INSTEAD OF USING FAKE NAMES ONLINE.
You Bembas are well remunerated by PF for the support you give them. You continue talking well of PF since you are benefiting. Don’t say “we Zambians” only when you want to corall in support from others.
Chisenga – u can proceed to defend them if u have the time & energy – by the way, what is to defend about a person who clearly tells u plainly that he has no vision?
Are aware of the Zuma must fall protest,the nkhandla report. Gupta scandle.Southafricans are known to protest even over water shortages.They are not a docile bunch
Iyee ba chisenga tamukwete ne nsoni apomupelele supporting PF blindly while they are looting zambia? Ati using fake names nga iwe niwe nani makaka lyobe. Can’t you see the suffering in the country brought about by these id!ots? Fuseke apa support your government of feaces?
@carlos you cracked my ribs munthu wandi !
An objective reporter would also have quoted finance minister Mutati lamenting about the inconsistent policy in mining.
@4 Napapa Sana,MUTATI is just RANTING because HE IS NOT PATRIOTIC and he is A GLORY SEEKER and SELFISH INDIVIDUAL LOOKING FOR SOMETHING FOR HIS POCKET!! MUTATI was a Minister of Commerce and Energy, WHAT ARE HIS BIG ACHIEVEMENTS 10 YEARS OF BEING MINISTER under MMD. MULUSA is OBJECTIVE and PATRIOTIC, HE UNDERSTANDS THAT THOSE COMING FROM OUTSIDE HAVE SOMEHOW MESSED US UP and ABUSED OUR GOODWILL! He is NOW PART OF GOVT. so he has come to UNDERSTAND WHY CERTAIN POLICIES WERE UNSTABLE- MISCHIEVOUS INVESTORS TRYING TO CROOK THE HOST GOVT!MUTATI is seeking “CHEAP HEROISM” but UNWISELY PULLING DOWN HIS OWN HOUSE- He may soon face an INTERNAL REVOLT IF HE DOESN’T CHANGE!!
So then these are not accusations,its the truth….lol
Did you hear the theme running through his boring speech? He seems to think it’s the foreign investor’s duty to develop Zambia. Investors look for opportunities to make money for themselves and if they don’t like the environment they pull out and look elsewhere.
LULUSA IS RIGHT. WE HAVE A LOT OF INSENCERE INVESTORS BECAUSE THE SYSTEM IN OUR COUNTRY IS CORRUPT, INFESTED WITH A LOT OF INSENCERE POLITICIANS AND TOP CIVIL SERVANTS WHO SHOULD IN ACTUAL FACT SAFE-GUARD THE INTERESTS OF OUR COUNTRY BY ENSURING EVERYONE FOLLOWS THE LAID PROCEDURES.
The blame game should be stopped.
Of late atleast we’ve seen govt ministers being consistent with the policy direction the country is taking.
It’s not a lie that things are hard and our govt is not hiding, they are calling a spade a spade .
It’s darkest before dawn!!!!
And what is it “the policy”???
Be careful with your proverbs. As to the “.. it’s darkest before dawn…”, just wait.
This is only early evening, Just a sunset. Wait………
It is going to be long, long dark night with numerous violent thunderstorms
I can assure you that you have not seen real darkness yet. There will be no dawn under selfish, visionless PF.
My elder brother Yeta is presenting at the same convention as well . Go bro………..Am proud of you.
Is that Yeta Banda?? There’s no such person on the list of presenters.
Who is this fat man lieing to…he thinks just because people are based outside Zambia it means they dont know…
All things being equal, commercial outlets will be followed by industrial outlets. Investors behave like all intelligent people. They need assurance, they need understanding, they appreciation. In short, they seek profit in an investor friendly environment. Sometimes, it is better to allow technocrats to do their work. To display samples of the investment policies and laws, to explain the various steps that need to be followed to open a business in the country. Certain areas are more critical than others: energy, tourism, manufacturing, transport, ICT, etc. It is more of marketing than telling the truth.
As a delegate of the ‘invest in zambia business forum’ indaba .I feel the minister was honest and to the point.He knows at least who are the enemies of progress.
Fellow countrymen as long as all good people sit and do nothing about the economy ,poverty will never leave us.What Government needs is support from everyone.
To all those who like criticizing our High commissioner Emmanuel Mwamba ,What have you done for the country?
Show us the good seed you have planned in Zambia.His excellency is trying his best under difficult circumstances to market Zambia to the world all the time.
I hope this indaba will change the hearts of many investors who attended and bring Real Investors to Zambia.
Just enjoy your allowances quietly and quit defending “ba Kapala” PF government. Individual and corporate contributions will amount to nothing under the leadership of these inconsistent, clueless con artists.
The IMF delegation merely stated facts as already known by every normal person.
As for now eat your share and deceive only yourself.
@George, remember how you celebrated the PF “win”? You won. So get on with it. Don’t start pleading for ideas of how to run the country’s economy when you claimed that there was nothing to fix barely 2 months ago. What is clear with PF is that a PF win is a loss for the rest of the country. So enjoy your hollow victory and don’t spray us with your faeces.
MULUSA is RIGHT!MUTATI is just RANTING because HE IS NOT PATRIOTIC and he is A GLORY SEEKER and SELFISH INDIVIDUAL LOOKING FOR SOMETHING FOR HIS POCKET!! MUTATI was a Minister of Commerce and Energy, WHAT ARE HIS BIG ACHIEVEMENTS 10 YEARS OF BEING MINISTER under MMD. MULUSA is OBJECTIVE and PATRIOTIC, HE UNDERSTANDS THAT THOSE COMING FROM OUTSIDE HAVE SOMEHOW MESSED US UP and ABUSED OUR GOODWILL! He is NOW PART OF GOVT. so he has come to UNDERSTAND WHY CERTAIN POLICIES WERE UNSTABLE- MISCHIEVOUS INVESTORS TRYING TO CROOK THE HOST GOVT!MUTATI is seeking “CHEAP HEROISM” but UNWISELY PULLING DOWN HIS OWN HOUSE- He may soon face an INTERNAL REVOLT IF HE DOESN’T CHANGE!!
Egypt has devalued its currency by 48% in order to meet a key condition set by IMF. I wonder what percent is set for Zambia. I hate IMF not well meaning leader should lie to us that they mean anything well for Zambia. Greece has rejected them. Away with IMF
Greece has NOT rejected IMF. Inform yourself before making misleading comments.
I have pictures to prove it. @ buck teeth Lungu . Am not bothered by your lack of faith in people …. You have the right to your own opinion even if it’s moronic.