PROSPECTIVE investors studying Zambia would be forgiven if they felt they did not have a clear idea about the Southern African country’s economic policies.

Its economy is booming on high demand for commodities — it is a key global player in copper and cobalt production and also gifted with gemstones and gold — and it has a history of political stability mainly cemented during the long rule of the Movement for Multi-Party Democracy (MMD).

But under the government of President Michael Sata and his Patriotic Front, investors have received a mixed bag of practices (and policy). The government has taken back some companies sold to private businesses under the MMD and has appeared to clamp down on foreign investors.

Vice-President Guy Scott has been at pains to explain what is happening. His view is that the government and country are still on a sound footing. Yes, the government has grabbed back some companies previously sold, but that does not represent a policy shift to socialism. Mr Scott says reversal of those sales — including a mobile phone operator to Libyan investors and that of Finance Bank to South Africa’s FirstRand group — was part of the party’s election manifesto. There is no clarity whether the investors kicked out will get any compensation or will be paid back the value of their investments.

[pullquote]Second, no opposition politician needs to earn his stripes by spending nights in jail, especially because of an archaic colonial law on public order[/pullquote]

He argues that the deals were not entirely above board in the first place and added little or no value to Zambia. What Zambia would like to argue is that it is cleaning up business practices and ensuring that the environment guarantees fair play, natural justice and security for investors’ cash.

Harassment of the political opposition is another matter that has vexed investors. An inability to tolerate dissenting views is always a bad sign in democracies and is viewed as anti-business. But Zambia argues it is only holding opposition leaders to account for claims they make and that even Mr Sata, while he was still an opposition leader, spent many nights in police cells as governments investigated his political outbursts. Mr Scott argues that Zambia’s opposition is bent only on soiling the government’s good name.

But any government that wishes to attract investors on a global scale needs clarity around its policies. It needs to explain its decisions to investors and citizens. It cannot arrogantly imagine that these things are clear to everybody. Dr Scott argues that too much is placed on happenings in Zambia mainly by people who do not understand the country or its history. But primarily because this ignorance exists, the government must do substantially more to educate investors about what it is trying to achieve and how it is going about it. This is no time to hide its head in the sand.

Second, no opposition politician needs to earn his stripes by spending nights in jail, especially because of an archaic colonial law on public order. Although Zambia says that the law is under review, it must take active steps to repeal it to convince both citizens and investors that their security is guaranteed fully by the country’s constitution.

Communicating is not as easy as it always appears to be. The government must be as clear as possible about its intentions.

[pullquote]Zambia, or any other country in the region, must strive not to hurt these important strides through poor communication and ambiguity about policies and intentions.[/pullquote]

Stability and growth in Zambia is important to the Southern African Development Community region. It would mean the region is slowly but surely moving towards its target of reducing poverty and improving household incomes.

With recent rapid growth in countries such as Angola and Mozambique, the region cannot be seen to be undermining efforts to tap and utilise foreign direct investment.

Zambia, or any other country in the region, must strive not to hurt these important strides through poor communication and ambiguity about policies and intentions.

[ Business Day is South Africa’s Financial Newspaper]

Government has urged the police command in North Western and Copperbelt provinces to beef-up security measures in a bid to curb illegal mining of copper and other precious minerals.

Last week, two Illegal miners were killed when a tunnel they attempted to quarry copper ore from at Konkola Copper Mines (KCM) in Chingola collapsed due to heavy rains.

Mines Deputy Minister Richard Musukwa said the Government will not condone a principle that allows a few selfish individuals to amass wealth by robbing Zambians of their precious mineral wealth through illegal mining activities.

Mr Musukwa who is also Wusakile Constituency Patriotic Front (PF) Member of Parliament (MP) said in an interview yesterday that the Government was concerned with how perpetrators would indulge in illegal mining, a scourge which is detrimental any individual’s safety.

“Illegal mining of minerals is unacceptable and as Government we will not condone a principle where only a few selfish individuals benefit from our mineral wealth. I urge the police command in North western and Copperbelt provinces to monitor this situation closely and bring the culprits to book,” he said.

In a separate interview, Mine Workers Union of Zambia (MUZ) President Nkole Chishimba said illegal mining of copper should be curbed at all costs to avoid distortion in the economic values realized from the country’s mineral wealth.

Mr Chishimba said stakeholders in the mining sector must come together to devise mechanisms on how illegal mining of copper and minerals can be curbed.