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Non-Governmental Organizations’ Coordinating Council (NGOCC) Executive Director Engwase Mwale has said Zambia’s financial constraints should not be used as an excuse for not having the referendum on the Bill of Rights shortly after it failed to meet the threshold because the Commonwealth has already offered full support regarding the referendum.
Yesterday during the commemoration of International Women’s Day at the Lusaka’s Show grounds, President Edgar Lungu said Government would not at any time soon hold a Referendum on the Bill of Rights due to financial constraints.
The President the Country had held the two costly elections in the last two years and now was time to channel resources towards alleviating the plight of many Zambians.
The Pan African Radio Journalist Hermit Hachilonde reports that the NGOCC Executive Director Engwase Mwale said the nature of the Bill of Rights which must be adopted through a referendum is a developmental issue as well which is worthy every resource and it requires commitment by all citizens because it is one of the people’s plights that need urgent alleviation.
She was quick to explicate that the Bill of Rights is an embodiment of citizens’ aspirations when it comes to the human rights which includes the prescription of fundamental Governance principles, adding that the president should always bear in mind that a referendum ought to be made a national priority.
Ms. Mwale has however stated that some of the provisions in the 2016 amended constitution are rendered meaningless if the Bill of Rights is left as it is with its discriminatory clauses, especially those impacting on the status of women, children and the differently-baled.
Ms. Mwale expressed worry how a Government that is resolving to empower women and other vulnerable groups can at the same time seeing no problem with having a Bill of Rights that is discriminatory to the disadvantaged groups in the society.
She has since noted that it is imperative that top national leaders are engaged on such researched and well-meaning endeavors to avoid politicizing such a noble agenda that is meant to protect every citizen towards sustainable development.
“Financial constraints should not be used as an excuse for not having the referendum on the Bill of Rights shortly after it failed to meet the threshold because the Commonwealth has already offered full support” Ms. Mwale said
President Lungu’s arrival in Addis Ababa welcomed by Foreign Minister Harry KalabaForeign Affairs Minister Harry Kalaba has reaffirmed the Zambian Government’s commitment in promoting and upholding of the fundamental principles upon which dialogue with the European Union (EU) exists, reports Pan African Radio Journalist Hermit Hachilonde Reports.
Speaking during the Zambia-European Union (EU) Political Dialogue meeting held at Chilanga’s Twangale Park today, Mr. Kalaba said the existing dialogues are the eradication of extreme poverty in Zambia, the preservation of the environment, access to quality education and the promotion of human rights and good governance among others.
The foreign affairs minister who thanked the European Union for the continued support rendered to Zambia in the economic and social sectors that are critical to the development in Zambia said over US$2 trillion dollars is wasted globally due to corruption and neo-patrimonial practices.
Mr. Kalaba has however stated that Zambia is committed to the fight against corruption and this has been illustrated by the stern manner that the PF Government has handed recent cases of corruption regardless of the individual’s standing.
“i want to reaffirm the Zambian Government’s commitment to promoting and upholding of the fundamental principles upon which dialogue exist” Mr. kalaba said
Meanwhile speaking at the same event, European Union Ambassador Alessandro Mariani the 2017 will be a year where Africa will be a focus on the global stage, affirming that today’s meeting should be set in the context of an important year in the African-European Union partnership.
He said the friendship between Zambia and the European Union is remarkable and over many years of close collaboration the EU have established a solid, dynamic and widening partnership.
“2017 will be a year where Africa will be a focus on the global stage” Ambassador Alessandro Mariani said
The Government has constituted the full Governing Board for the Zambia Revenue Authority [ZRA] and Ms. Chileshe Kapwepwe has been elected as Chairperson to be be assisted by Mr. Alfred Lungu who was elected as Vice- Chairperson.
Commenting yesterday afternoon, Minister of Finance Felix Mutati congratulated the board on the successful deliberations at their inaugural meeting and noted further that, “the election of Ms. Kapwepwe is historic because she becomes the first woman to chair the board since the formation of ZRA in 1994.”
Ms Chileshe Mpundu Kapwepwe
“It gave me great pleasure to constitute the board,” stated the Minister of Finance, adding that, “the election of Ms. Kapwepwe by the ZRA Governing Board to the position of Chairperson, also gives me pride and confidence that the authority will become stronger at all levels and help us to seal the gaps in tax administration.”
The Minister further added that Ms. Kapwepwe brings a wealth of knowledge and expertise in the area of public policy, financial management and governance following a career spanning over 25 years in the local and international private and public sector organisations.
Mr. Mutati congratulated Ms. Kapwepwe and described her as, “a well-trained professional who is profoundly gifted and through whom leadership talent among women in Zambia will be viewed positively by the tax paying public.”
Her previous roles include that of Executive Director for the International Monetary Fund [IMF] Africa Group One Constituency in Washington USA, Deputy Minister of Finance and National Planning, Managing Director of the National Airports Corporation, and Contracts Manager – SGS Societe General de Surveillance. She also served on various other Boards namely Bank of Zambia, BP Zambia Plc, and the Zambia Privatization Trust Fund.
A Chartered Accountant by Profession, Ms Kapwepwe; the new ZRA Board Chairperson, is a Fellow of the Association of Chartered and Certified Accountants ACCA (United Kingdom), a Fellow of the Zambia Institute of Chartered Accountants (ZICA), and also holds a Master’s Degree in Business Administration from the University of Bath (United Kingdom).
The full board, appointed by the Minister of Finance, is as follows;
Minister of Health Chitalu Chilufya(l) and United States of America Ambassador to Zambia Eric Schutz(r) chats after a Press Briefing at Ng’ombe Health Centre in Lusaka
Zambia is due receive 420 Million US dollars from the American government under the Presidents Emergency Fund for Aids Relief – PEPFAR.
Minister of Health Chitalu Chilufya says the country has secured preliminary approval for the funding from PEPFAR Management.
The Minister also says government has continued to increase funding towards the health sector in order to fight diseases such as HIV and AIDS.
Dr. Chilufya says Zambia can eliminate the disease way before 2030 if it implements various strategies effectively.
He says in order to achieve this target government will soon launch ‘The know your child status’ campaign among other initiatives.
Dr. Chilufya says government will also support the program of putting people on treatment immediately after they are diagnosed with the virus.
He said this during a joint press briefing with American Ambassador to Zambia Eric Schultz held at Ngombe clinic in Lusaka.
Speaking at the same function the US Ambassador urged government to continue investing in education and the health of citizens.
Mr. Schultz said it is good that several Zambians have continued to benefit from PEPFAR program.
He was however quick to state that no assistant program lasts forever hence the need for countries that benefit from the program to increase their allocation towards the fight against HIV/AIDS.
Nkandu LuoGOVERNMENT has increased the number of students who have been selected for bursary for the University of Zambia (UNZA) 2016/2017 academic year from 2,009 to 2,653.
The government has also suspended bursaries for three male students who were inciting riots at the institution last Friday.
Minister of Higher Education Nkandu Luo dismissed allegations of corruption in the selection of beneficiary students by the Bursaries Committee.
Professor Luo told a press briefing yesterday the increase in the number of beneficiary students followed a request made to the Ministry of Finance for possible additional funding.
She said the request was necessitated by 1,916 appeals from students who had not been selected for bursary for the 2016/2017 academic year.
Prof Luo said priority was given to students from the School of Natural Sciences followed by those doing the Bachelor of Education with Sciences who were all selected and awarded various percentages of sponsorship ranging from 50 to 100.
Last year, the ministry of Higher Education had awarded government bursaries to 2,009 students from UNZA out of the 3,982 students who were eligible for sponsorship
Meanwhile, Prof Luo has suspended the bursaries of three students who invited first year students to the Monk Square last Friday to riot over bursaries.
“I want to give a timely warning to organisers of riots at both the Copperbelt University (CBU) and UNZA that I will never close their schools during my tenure but will not entertain damage to property and I will take appropriate action against any ringleader,” she warned.
Prof Luo said she has a video of the students who were encouraging others to riot.
Chishimba KambwiliRoan Member of Parliament Chishimba Kambwili says he is disappointed with the slow pace at which Luanshya Copper Mines is handling the case involving over 1,600 miners at Baluba Mine who were sent on forced leave last year.
Dr Kambwili has wondered why only 43 miners have so far been recalled while over one thousand are still waiting.
He added that despite the copper prices selling at over six thousand dollars per tonne, the Chinese owned mining firm has still maintained the low pace at which it is recalling workers.
Speaking when he addressed some former miners in Luanshya on Wednesday, Dr. Kambwili disclosed that he was dispatching a team of twelve former miners to Lusaka to meet Vice President Inonge Wina and Minister of Mines Chistopher Yaluma over the matter.
The Roan Member of Parliament hopes that once the former miners meet the Vice President and the Mines Minister, a lasting solution will be found.
Last month, Luanshya Copper Mines Spokesperson Sydney Chileya told ZNBC News that 150 miners from the one thousand six hundred miners sent on forced leave will be recalled by the end of this month.
Mr. Chileya said 43 miners were recalled in the first week of February and the remaining miners would be recalled in groups until they reach 150.
He said the decision to recall the miners was aimed at reviving the slag treatment plant where Luanshya Copper Mines has pumped in three million dollars.
Huge crowds gather outside the OYDC for free foodHundreds of mourners converged on the Chunga cemetery in Lusaka yesterday for a mass burial of the eight people who died in a stampede at the Olympic Youth Development Centre (OYDC) on Monday as multitudes gathered to receive food hampers.
There were touching scenes of expressions of grief from the mass of mourners who attended the burial who came from some of the most heavily populated residential areas of Lusaka.
National Guidance and Religious Minister Godfridah Sumaili, Lusaka Province Minister Japhen Mwakalombe and Lusaka District Commissioner Davison Mulenga were present to mourn with the bereaved families and friends.
Reverend Sumaili said the deaths were a painful loss to the nation as they could have been avoided had Church of Christ followed Government instructions not to go ahead with the event without following laid down procedures for handling large gatherings.
She said the tragedy served as a tragic reminder to local churches to be cautious about the authenticity of foreign faith-based organisations that came to conduct religious programmes in the country.
“This is a wake-up call for local churches. They should have the spirit of discernment to know the spirit behind some of the churches that come to conduct their activities in Zambia,” Rev Sumaili said.
She said Zambia was a nation of laws and that religious bodies that did not adhere to laid-down legislation would face the law.
Rev Sumaili also said Zambia was set to record a bumper harvest this year and that politicians who had politicised the matter were seeking political mileage.
Mr Mwakalombe called on Zambians to unite in prayer for the bereaved families.
He said the Government would soon announce measures that would be taken to support the families.
President Edgar Lungu had instructed investigative wings to expedite investigations into the matter to determine the real cause of the stampede.
Mr Mwakalombe said people who were attributing the deaths to high hunger levels in the country were insensitive to the feelings of the families.
Police have justified the use of teargas as a crowd control measure during last evening’s Under-20 Africa Cup semifinal match between Zambia and South Africa at Heroes Stadium in Lusaka.
Tunisian referee Sadok Selmi stopped play in the 105th minute after players, coaches,match officials and fans were chocked by the teargas.
Police spokesperson Esther Katongo said officers were forced to discharge teargas outside Heroes Stadium to disperse unruly fans who
attempted to force their way into the stadium.
“There was a mob outside which mobilised and wanted to break through and force their way into the stadium.
After police repelled them, they started throwing all sorts of missiles at police officers and this prompted officers to discharge teargas to disperse them,” Katongo said.
“All this was happening outside but due to wind, the gas also affected those that were inside,” she added.
Katongo said Police should not be condemned for discharging teargas outside the stadium.
“People should not rush into condemning but should also look at the reasons why Police discharged the teargas. Police officers are people who think and reason like those people saying they should have done this or that,” she said.
Zambia went on to beat South Africa 1-0 to reach the final to be played on Sunday at Heroes Stadium.
Will Smith in Zambia
Popular Hollywood star and Musician Will Smith arrived in Livingstone this morning for a brief tour of the tourist capital.
While in Livingstone, the Fresh Prince of Bel-Air is expected to take part in a number of leisure activities such as the Helicopter flight, tour of the Victoria Falls and the Island.
When he landed at Harry Mwaanga Nkumbula around 11:00 Hours, Smith freely mingled with the airport crew and the locals.
He is accompanied by his family and he is using his private plane.
The Zambia Tourism Agency confirmed that Smith is expected to fly back today this evening between 20:00 and 22:00 Hours.
Over the weekend, Smith was in Egypt where he toured the Pyramids.
Mr Amos ChandaOpposition FDD Spokesperson Antonio Mwanza has advised State House Spokesperson and Presidential Aid for Media and Public Relations Amos Chanda to use his media briefings to update the public on the state of the nation as opposed to giving free publicity to UPND leader Hakainde Hichilema.
Mr Mwanza said it was worrying that Mr Chanda, whom he described as the President’s mouthpiece has turned the platform which he is supposed to use to put a spot light on the President and his government into launch pad for missiles for attacking Hakainde Hichilema.
He said Mr Chanda has continued to make the opposition leader as a subject matter instead of his boss something he said was free publicity for the opposition leader.
“Since President Lungu was elected in office, comrade Amos Chanda, the President’s mouthpiece has held a number of press briefings. What is worrying, is that instead of using these press briefings as a the people on platform to update the state of the nation and as a tool for him to push a narrative that his Government wants the people to hear and believe, he has turned these press conferences as launch pads to fire missiles and bitter savor at Hakainde Hichilema.
“Instead of putting the spot light on his boss and put a very positive glow on him, he always lamentably puts the spotlight on HH, making him the subject of discussion at the expense of his own boss and his Government. Why should you be giving your “opponent” free publicity? That is bad strategy. You don’t help President Lungu by always discussing his opponent at every given opportunity; in fact you are doing him a disservice by highlighting his opponent,” he said.
He said Mr Chanda should realise that his strategy of attacking his opponent has been used before and has led to losses such as that of Rupiah Banda in 2011.
“My humble advice to Comrade Amos Chanda and his boss is that they must realise that they are in power and thus people expect nothing but leadership from them. People are not really interested in hearing state house talking about HH or any opposition leader, they are interested in solutions; they want answers from their leaders; they don’t expect cheap politicking from their leaders.
“Spending too much time talking about HH, and forcing him to recognise President Lungu only makes the Government look unsure about them; it makes them appear to be frightened little men who are not really convinced of their own victory. It confirms HH’s narrative that they didn’t win the elections,” he said.
Former Chipolopolo midfielder Isaac Chansa has joined National First Division promotion hopefuls Royal Eagles.
Chansa was most recently with Zambian champions Zanaco but has now returned to South Africa to reunite with Eagles coach Kosta Papic.
The Serbian was at the helm at Pirates during Chansa’s first stint with The Bucaneers from 2004-07.
Papic has confirmed to KickOff.com that the 33-year-old has signed for the club and is now awaiting his work permit before he becomes eligible for selection.
“Chansa is already training with the club and has signed but is waiting the issuing of his work permit,” Papic tells KickOff.com.
Eagles are chasing promotion this season and feel the experience of the Zambian midfielder will help them with that target.
They are currently in the second Promotion Play-Off Position, nine points behind leaders Thanda Royal Zulu with two-thirds of the season played.
In January, Chansa trekked to Iraq and signed a two-year deal with Iraqi top flight side Zakho Football Club.
Ex-Chipolopolo striker Masauso Tembo is delighted to be appointed assistant coach at FAZ Super Division side Forest Rangers.
Forest on Tuesday announced Tembo’s appointment on a two-year deal.
Tembo re-unites with Forest head coach Perry Mutapa whom he worked with at Lusaka Dynamos for three years.
“”This is a big opportunity and challenge. But am happy that Forest trusts me enough to engage me,” Tembo told the Forest media.
“It has been a while since the club last won any silverware and I’d benglad to help it achieve that,” he said.
Tembo further said he was excited to be re-united with Mutapa.
“Perry Mutapa, the head coach, is someone I’ve known and worked with for a long time dating back to our playing days at the national team where we were even room mates.
As coaches we launched our careers together so we work well together and understand each other very well. Reuniting here at Forest is
prayer answered because we have some goals to achieve,” he said.
Owen Kaposa is another assistant serving under Mutapa.
The Zambian High Commission in South Africa has appealed to a Zambian national being sought by Pretoria Police in connection with a case of alleged murder of his girlfriend and son to surrender himself.
Zambia’s High Commissioner to South Africa, Mr. Emmanuel Mwamba disclosed that South African Police Service (SAPS) has sought the help of the Embassy to help locate Mr. Banda.
Mr. Mwamba has called on Abassy Banda to report himself to the police so that he could help with their investigations.
The South African Police Service (SAPS) from Sunnyside Police Station in Pretoria have opened a case against 28-year old Banda, holder of passport number ZN382769, who is a suspect in a murder case of two people and a case of arson.
Banda, whose whereabouts remain unknown, is on 27th February, 2017 alleged to have set ablaze the house of his girlfriend at Barclay Square Flats in Pretoria.
His daughter, aged three years, died in the house while the mother died later in hospital.
Mr. Mwamba said Zambians in South Africa were well known to be of good behavior and good reputation and it was in this spirit that he called on Banda to hand himself to the Police.
He said a matter like this needed to be handled well so that it does not tarnish the good image and reputation that Zambian nationals enjoyed in South Africa.
“Our nationals have been known to be law abiding residents. They have been known to be people of exemplary good behavior and good reputation. It is in this spirit that we urge Mr. Abassy Banda to surrender himself to the police so that he can give his account and his side of the story,” Mr. Mwamba said.
“Mr. Banda is assured of our support as he is deemed innocent before the law until proven guilty in the Courts of Law”.
The High Commissioner conveyed his condolences to the family of the deceased and wished for speedy investigations so that the bereaved could quickly find closure on the matter
The mother has been identified as Jacklyn Manganyi, and the three-year old as Nkaceko Masauso Manganyi.
A youth leader has said the United Party for National Development (UPND) should stop crying to the international community if they cannot participate in global events such as International Women’s Day celebrations.
In a statement, Prince Ndoyi expressed disappointment that the UPND leadership instructed their women to shun Women’s Day celebrations saying the event is neither a PF nor Edgar Lungu day but a global day that celebrates women.
He said the UPND should stop playing double standards by instructing the women in their party to shun international events while using money from government through the contributions from their Members of Parliament which includes women MPs to insult government.
“There was no need to shun women’s day celebrations as if the International Women’s Day is a Patriotic Front day or an Edgar Lungu Day. These are the same people who are going round crying to the international community but are failing to recognise international events.
The UPND should stop playing double standards, while they instruct the women in the party to shun national events; the leadership in the party is using money from government through the contributions from their Members of Parliament which includes women MPs to insult government,” he said.
He said the UPND leadership was embarrassed that they cannot point a finger at President Edgar Lungu when it comes to women empowerment because the President had demonstrated that he considers women to be equal partners in development by appointing the first female Vice President of the Republic.
He noted that it is days like this when stakeholders including political parties compare notes on strategies to improve the welfare of women especially on meeting regional standards and protocols on women participation in leadership.
Mr Ndoyi who is the former ZANASU Vice President further said it was appalling to see how the UPND’s leadership has begun to handle national issues judging from the way they are handling last year’s election loss as they have continued to live in denial by refusing to accept the outcome.
He also laughed at the notion that UPND women did not participate in the celebration saying the women celebrated with their colleagues through the various organisations they belong to.
“The UPND leadership in fact should not cheat itself that their women didn’t attend yesterday’s celebrations.The only thing that was missing was their party regalia otherwise the UPND women were represented through different organisations like the church.
“In a democracy it is folly to think because one individual says don’t attend this or that, and then no one will. People are seeing through the desperation of their leader to hold on to the party presidency. One cannot use such an important day on the calendar of women to gain sympathy and political mileage,” he said.
Mr Ndoyi commended women from the various political parties who participated in the celebration saying “the event is not about the Egos of individuals but celebrations of achievements scored by women in our different spheres of life.”
Despite the claims of those who said growth in Zambia was the result of better governance, the problem now is precisely that it wasn’t. To the contrary, the country is now among the most unequal countries in the world. Today the top 10% of Zambians receive 52% of all income, while the bottom 60% of the 16-million population gets just 12%.
Zambia was a poster child for the Africa rising era in the 2000s, when its economy grew at 7% annually.
Three externally driven changes made the boom times possible: Surging commodity prices fuelled by China’s burgeoning appetite, an increase in aid coupled with debt relief, and the ability to fund governments through new bond issues.
We know now, in today’s more difficult times, that across Africa this growth had little to do with better governance or, for that matter, governments’ development vision, focus and actions.
In Zambia, when Chinese interest slackened and the copper price went down, economic growth slowed, the effects worsened by inconsistent tax policy and a spendthrift government. Growth fell to just 2.9% by 2015, and 3.6% last year, barely enough to maintain current per capita incomes and wholly inadequate to generate the employment required, especially by the large number of young people looking for jobs.
Kanshanshi Mine (Greg Mills)
Debt, from which Zambia was all but totally relieved in 2006, now stands at just under $10-billion, or half of gross domestic product. Much of the new debt taken out under the Patriotic Front government (which took over in 2011), more than $3-billion in just four years, has been spent on civil service salary increases. The public service numbers 237,000 of the 625,000 people in formal employment, and consumes more than half the government budget. Public service salaries have increased by nearly 60% in real terms under the PF government, now led by Edgar Lungu.
The cost of debt servicing is estimated at 17% of the budget (or 3% of GDP) in 2016, or $850-million. There is a larger crisis just around the corner: some $750-million of debt matures in 2022, $1-billion in 2024, and $1.25-billion between 2025 and 2027.
Despite the claims of those who said that growth was the result of better governance, the problem now is precisely that it wasn’t. To the contrary, Zambia has become among the most unequal countries worldwide as the proceeds of growth were redistributed among the Lusaka-based elite.
Today the top 10% of Zambians receive 52% of all income, while the bottom 60% of the 16-million population gets just 12%
Sentinel Mine (Greg Mills)
Bereft of ideas, rather than take difficult political steps the government has sidestepped its responsibility in reverting to tried and trusted populist methods of squeezing foreign investors, behaving less like a poster-child than a predator.
Much of the country’s recent boom has been based on the fresh investment made in the country’s mines after privatisation. But Lusaka only agreed to sell its crown jewels when there was absolutely no other alternative.
In April 1968, then President Kenneth Kaunda set the nationalisation ball rolling by announcing the state would take control of all private retail, transport and manufacturing firms. Thereafter government purchased 51% of shares from the existing mining companies, Anglo American Corporation and Roan Selection Trust. In 1973 both companies were fully nationalised and transferred to the state’s Zambia Consolidated Copper Mines (ZCCM). That year, the mines produced at least 720,000 tonnes of copper and employed 48,000 people.
Over time, however, burdened by poor state management, the copper industry collapsed and along with it the economy. ZCCM production fell to 257,000 tonnes in 2000, when it employed just 21,000 people, losing $1-million each day. The contribution of mining to the economy fell from one third of total output in 1973 to under 8% of output 30 years later.
Over the same period Chile’s copper production, from lower grade ores, went from less than 700,000 tonnes to over 5-million tonnes.
Since privatisation in Zambia in 2000, mining companies have consistently provided 80% of export income, 12% of GDP and around one third of all tax income. More than $10-billion has been invested, over 85% of all FDI in this period, most of it by the three biggest companies – Konkola, Mopani, and First Quantum’s Kansanshi and Sentinel mines.
Copper production scaled the early 1970s’ peak for the first time again in 2012. As a result, contrary to popular perceptions, the number employed in the post-privatisation mines is greater than under nationalisation, now more than 50,000. Additionally, the government has enjoyed an automatic 10-22% free-ride through ZCCM-Investment Holdings (IH), from which is has gained not less than $200-million in dividends from Kansanshi Mine alone
Even so, judging from their actions, successive Zambian governments apparently prefer to see the mining industry as crooks conniving to undercut the state and rip off Zambians.
First Quantum and ZCCM-IH have invested over $2.5-billion in Kansanshi. There have been a number of years when Kansanshi, alone, has been responsible for as much as 90% of Zambia’s corporate income tax, totalling to date $3.7-billion. It has also invested close to $200-million in CSR and education projects. Wage and electricity payments have injected another $50-million monthly into the Zambian economy from mines that did not exist in 2000.
In return, following the abrogation by the previous Zambian government of the original, more investor-friendly development agreements in 2008, First Quantum has received a grand total of 80% of Kansanshi’s declared dividends amounting to $800-million (ZCCM-IH receiving $200-million), a long way from paying back the investment. Still, with its $800-million and backed by further loans, First Quantum has built Sentinel at a cost of $2.3-billion, which will add another 300,000 tonnes of copper and more than 4,000 jobs to Kansanshi’s 270,000 tonnes and 8,000 jobs.
Now ZCCM-IH has instituted a legal action against First Quantum (and is threatening similar action against others) over the extent of interest payable on retained earnings at Kansanshi, despite these being ploughed back into the mine and its associated smelter. Given Kansanshi’s earnings it’s hard to see that any better investment opportunity ever existed in Zambia.
It’s hardly an action to encourage First Quantum’s directors to travel to Zambia, let alone attract other, serious investors who always look to see the way in which those already present are treated. While the Zambian government is desperate for cash to keep itself afloat, and this may be little more than a negotiating ploy, treating your most important investor this way risks a lot of hurt.
How painful this will be depends on Lusaka’s next move. Lacking fresh development thoughts, it has nowhere to go. This has led it to tap existing sources such as First Quantum, rather than sign on to an IMF programme, trim government, make savings and grow the economic base, investment and jobs.
Without change, it’s a path to ruin.
In part the tense relationship is ironically because of First Quantum’s dominant position in Zambia as the largest producer. Negotiations with the government are a paradox: they need more from First Quantum because the company is the main investor and taxpayer, because it fixes the roads and transmission lines, and builds and provides for local communities. Not only is it a constant reminder of the government’s failure, at the same time Lusaka needs to encourage the company to invest more.
The question for mining companies is whether it’s possible to shift off this increasingly predatory if schizophrenic path, one that threatens beyond Zambia as African governments search for answers to fix rather than fundamentally change the boom, gorge and bust nature of their political economies.
Of course, the better the education about how mining is hyper-dependent on technology, management and capital, the easier the route to partnership.
Miners and government have pursued various attempts at dialogue, most notably through the Zambezi Protocol. Such processes offer policy transparency and stability, but are at risk of cynicism and the political temptation of avoiding hard choices; an unwillingness to change a system from dependence on extractives and rent-seeking to one where the government is comfortable letting go and allowing the private sector to flourish.
And if Lusaka really does believe that the nasty foreign miners are ripping them off, taking their copper, then attempts at dialogue are deceitful, a case of rearranging deckchairs on the Titanic. A combination of misplaced nostalgia and apparently boundless avarice could, in this scenario, extend to government trying again itself to run businesses; put simply, nationalisation redux.
If the collaborative, educational route of dialogue fails, vastly more powerful but infinitely more dangerous levers exist. For one, the mining companies can signal their willingness (or not) to carry on regardless. Curtailing any further investment will inexorably lead to decline of the existing assets, and with it a fall in production – exactly what happened under ZCCM, although for entirely different reasons. This carries with it the risk that mines may reach a point of no return where the asset becomes too run-down to ever fix, and closure is inevitable. Shutting down production may be the only reset that government understands — but then it would be too late.
Police have justified the use of teargas as a crowd control measure during last evening’s Under-20 Africa Cup semifinal match between Zambia and South Africa at Heroes Stadium in Lusaka.
