Monday, May 13, 2024

Cabinet Approves Move to Open up the Railway Industry to the Private Sector

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Cabinet has approved in principle, the introduction of a Bill in Parliament to repeal and replace the Railways Act, Cap. 453 of 1984 in order to reform the rail transport subsector.

Cabinet agreed that it is important to enhance private sector participation through the open-access regime in order to develop and sustain the rail subsector.

President Edgar Lungu called for a 15th special cabinet meeting yesterday at Mulungushi International Conference Center in Lusaka to deliberate on important policy matters aimed at providing policy guidance.

In a statement released to the media, Chief Government Spokesperson Hon Dora Siliya said that that the creation of open-access rules and regulations will allow private sector players to access the railway system as long as they meet the conditions prescribed and do not exceed the design capacity of the particular railway.

“This decision of Cabinet might even allow companies such as those in the mining sector to run railway companies of their own operations,” she disclosed.

“The current structure of the sub-sector and the railway legislation is that the sub-sector entirely depends on the Treasury as the main financier. Therefore, the Government is required to finance the railway infrastructure, rolling stock and workshop equipment.”

Hon Siliya was confident that with increased investment in the road infrastructure in the country, especially, since 2013, road transport has been depended upon for transportation of goods and services and this has increased the cost of maintaining the roads.

“There is a need, therefore, for a renewed policy and planning to facilitate infrastructure development for rail transport and also encourage private sector investment in the rail subsector,” she said.

The Chief Government Spokesperson also disclosed that Cabinet approved the Revised National Intellectual Property Policy for implementation by various stakeholders in both Government and outside Government.

She said Cabinet is convinced that with the Policy in place, this will ensure effective and efficient use of intellectual property as an instrument for stimulating socioeconomic, industrial, technological and cultural development.

“The focus of the Revised Policy is to strengthen capacities for innovation, creativity, research and development, essential for knowledge generation, product and process development. The Policy will protect innovators and researchers through patents, copyright and trademarks, which enable people to earn recognition or financial benefit from what they invent or create,” she added.

“Cabinet also approved the ratification of the African Union Convention on Cyber Security and Personal Data Protection. The African Union Convention represents commitments by Member States to take measures on a range of issues, including cybercrime, cyber security, electronic transactions, and protection of personal data.”

Hon Siliya further said Cabinet approved an eleven member Board of the National HIV/AIDS/STI/TB Council in accordance with the provisions of section five of the National HIV/AIDS/STI/TB Council Act, No. 10 of 2002 of the Laws of Zambia.

She stated that the National HIV/AIDS/STI/TB Council is currently operating without a Board following the expiration of the term for the previous Board.

“This has resulted in underperformance of the National HIV/AIDS/STI/TB Council as certain key policy matters that require the decision of the Board cannot be made in the absence of the Board members. The Board is required to provide strategic direction to the National HIV/AIDS/STI/TB Council in order to ensure corporate governance and attainment of its functions as stipulated in the Act,” said Hon Siliya.

She also disclosed that Cabinet approved the closure of the Zambia National Provident Fund (ZNPF) member accounts, which are being administered by the National Pension Scheme Authority (NAPSA) on a custodial basis.

23 COMMENTS

  1. I thought this had already been done. What happened to Kavindele’s Rail project we heard about some time ago? There is definately a lot of potential for growth in the private sector but policy renewal alone is not enough. We need an investment plan which allows for Zambian owned companies to easily participate in infrastructure building. Otherwise, we will only be laying our destiny once more into the hands of financially powerful foreigners .

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  2. Which private sector would be most welcome to railway system other than Chinese investors!?

    Every Sector of the economy will be taken by the Chinese investors.

    Zambians wake up and smell the aroma of PF corruption!

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  3. This is good news. We are redefining the private sector. Please visit my Facebook page to engage me and my company

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  4. The end of railways, it well known that everything PF touches collapses. They know nothing but stealing nine chale and kz are happy but what they’re not telling you is that they’re trying their luck and have no guarantee that this is going to work, no research or consultation done

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  5. Lip service since days of Kaunda means I’m not moved. We’re a banana republic and all I see are people in government stealing as much as they can while those in opposition campaign for their turn.

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  6. Ati “Open Access” to encourage participation of other players! Not sure where this will lead us. Firstly the PF are justifying the illegal takeover of CEC infrastructure by appearing to welcome others to the dilapidated railway sector infrastructure …

  7. Everything is for sell. Yesterday forestry today railways!

    We don’t have a private sector in Zambia capable of handling this, which means they will work with external Investors to find them and more externalising of GDP will happen. Either that or straight up given to China who are more than capable, look at their bullet trains.

  8. I don’t think KZ should be given the task because people would be tossed off the trains for whatever reason!

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  9. Can Kavindele now expand his railway line. For 15 years we have only been seeing a 5meter stretch at Chingola.

  10. Just know they want to bring in the Chinks after that inflated railway line rehabilitation deal the signed…only a foooool would trust these thieves!!

  11. Allow us to see the proposed legislation naimwe because being this close to elections requires caution when dealing with law and avoid conflict at operational level when you are gone.

  12. I hope the loan negotiations with China are not turning into arm twisting of government (PF to be specific) to make bills that will eventually give industries to China, unfortunately I don’t trust PF because of how they have run issues of governance.

  13. Someone has written:
    ‘It better not be China. Bring Japan, if you wish. The China of today is not the China of UNIP era.’

  14. We haven’t forgotten how you wanted to share public schools when you were Education Minister in MMD madam Dora Slit. Mwanta Kavindele has been struggling to construct his North West Railway because people in GRZ has been blocking him. I hope the decision is in public interest because the kleptomania that has gripped the PF is insurmountable.

  15. After swallowing $120m with no tangible development in railway system? Kwena bungwele is deadly curse.

  16. Dora does have a different hair style from the last time she announced her covid-19 status which means she been to the hair dressers and broke the government regulation which she preaches about and gets paid trolley loads of tax payers .There is simply no logic in making rules which you cannot follow .This government is clueless and worse than covid 19 .

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  17. Good idea but Who are the investors?
    By the way, couldnt help noticing the mask- please stop with these masks already!

  18. We already know who the private investors are. Just say it’s the Chinese. They’re the only group currently interested in investing in Zambia, under this corrupt government. So all the key assets will be under Chinese control, TV broadcasting, mining, railway, and what not. Welcome to Chambia. Anyway, everything will have to be reversed once this corrupt regime is kicked out of office next year. Magufuli canceled a lot of useless contracts that were left behind by the previous administration. The next president in Zambia should be ready to reverse a lot of damage these mediocre, clueless, PF criminals have inflicted on our country.

  19. The problem with PF is that very soon we shall start hearing dubious railway line construction agreements as it was with construction of toll gates. There is nothing PF does without any scandal. There has never been any govt since independence which have been riddled with scandals like the PF led regime. PF does not initiate anything unless they calculate how much benefit will accrue to themselves and not to the general citizenry. That is the bitter truth we are in right now.

  20. Manje I thought iyi mbuzi yenze na Corona last week..lelo futi back mu office….anyone squandering 120 million from eurobond..and ati private sector..just say Chinese cockroaches and related pests..

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