President Rupiah Banda has urged the global business community to come and invest in Zambia as the country has vast investment opportunities in virtually all sectors of the economy.

And the President says government has taken a wide range of measures in response to the harsh effects of the global economic crisis.

Mr. Banda said this in his presentation dubbed ‘Zambia – A Promising Investment Destination’ during an interactive dinner session on Zambia at Westin Hotel last night at the on-going World Economic Forum on Africa in Cape Town, South Africa.

President Banda said there are a lot of factors which make Zambia an attractive destination for investment, which include political stability, democratic governance and peace which the country has enjoyed since independence.

“You will agree with me, ladies and gentlemen, that Zambia is one of the few countries on the continent that have never experienced civil strife since independence in 1964, and we will maintain it this way so that those intending to invest in the country can reap their profits in peace,” said President Banda.

Mr. Banda said the country has abundant natural resources, such as land, water and good climatic conditions ideal for those wishing to invest in various sectors of the economy.

The government has also put in place liberal economic policies and a pro-private sector framework supportive of macro-economic stability.

Mr Banda added that Zambia’s membership of regional bodies such as COMESA and SADC and its central location in the region also make it a more conducive destination for investment.

The President cited agriculture, mining and tourism as some of the key sectors with high investment potential.[quote]

Others cited were manufacturing, transport and energy, construction and real estates such as housing units and shopping malls.

“We have large tracts of land available for food and cash crops for both domestic and export markets, while in mining, the country is endowed with precious metals, uranium, iron, tin nickel manganese and agro minerals, among others which need exploitation,” he said.

President Banda also said government will float tenders before the end of the year for the exploration of oil and gas in some parts of the country.

On the global economic crisis, President Banda said government has responded by prioritizing infrastructure development and development sectors with global comparative advantage in the 2009 budget.

He said in this regard, government has increased financial allocation to the agriculture sector in this year’s budget and has further zero rated Value Added Tax (VAT) on selected agricultural equipment.

Mr. Banda said government has also increased financial allocation to the tourism sector in order to improve access to the northern tourism circuit and others.

He added that a number of measures have been taken in the mining sector, including the removal of windfall tax, increasing capital allowance to 100 per cent and reducing customs duty on heavy fuel oils.

“All these and other measures make Zambia a truly preferred investment destination,” he said.

President Banda said the Zambian economy has experienced strong growth at an average of 5.9 per cent over the last five years and 6.2 per cent over the last three years.

He however, observed that the current global economic crisis is impacting adversely on the economy, with GDP growth now projected to slow down to 4.0 per cent this year against the Medium Term Expenditure Framework (MTEF) target of 7 per cent for 2009.

The government has responded by focusing fiscal and monetary policy measures on maintaining macroeconomic stability and undertaking critical long term investments aimed at diversifying the economy and increasing its productivity.

In attendance at the dinner, among others, were former First Lady, Maureen Mwanawasa, Finance Minister, Dr Situmbeko Musokotwane, Commerce Minister, Felix Mutati, his mines counterpart, Maxwell Mwale, Agriculture Minister, Dr Brian Chituwo and Energy minister Kenneth Konga.

Earlier in the day, in his welcome remarks during the main plenary session of the forum, South African President, Jacob Zuma, said there is need for Africa to tackle the on-going conflicts in some parts of the continent decisively.

Mr. Zuma said the conflicts have the effect of making the global economic crisis worse on the continent.

Former UN Secretary General, Kofi Annan, said part of the solution to the global economic crisis lies in reforming the global financial institutions such as the International Monetary Fund (IMF) and the World Bank and ultimately the United Nations

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The Government negotiating team and Public Service Workers’ union representatives on the ongoing salary/wage negotiations have agreed on a 15 percent salary/wage award to public service workers.

Government has also announced that the signing of all collective agreements is expected to be concluded by this Friday, 12 June, 2009 and has since urged all public service workers to continue working normally.

Chief Government Spokesperson Ronnie Shikapwasha disclosed last evening in a media statement made available to the media, that the Bargaining unit comprising the public service workers’ union representatives and the Government negotiating team briefed Secretary to the Cabinet Joshua Kanganja that an agreement had been reached on a 15 percent salary increment to public service workers.

Lieutenant General Shikapwasha who is also Information and Broadcasting Services Minister said this was revealed to Dr Kanganja at a meeting held at Cabinet Office yesterday.

Rev Shikapwasha said considerable progress has been made towards finalisation of an agreement on the ongoing salary and wage negotiations for Public Service Workers and that during the meeting, the Bargaining Unit agreed to constitute a Joint Technical Committee to deal with the outstanding issues on housing allowance.

”In view of this positive development, the government is urging all public service workers to continue working normally”, said Rev Shikapwasha.

Public Service workers have gone on strike across the country paralyzing operations at hospitals and schools.

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Lusaka Province Minister Lameck Mangani has described the situation at the University Teaching Hospital (UTH) and some health centres in the country as worrisome. He said there is urgent need for health workers to return to work in order to save lives.

Mr Mangani said that remarkable progress has been made and consensus has been reached on a number of issues in the ongoing negotiations for improved conditions of service for public service workers.

Mr. Mangani has since pleaded with striking health workers and teachers to give dialogue a chance.

Mr. Mangani warned that the strike action by some health workers and teachers should not be politicized.

He urged politicians to desist from politicizing the strike action by public workers as their grievances are receiving adequate attention from government.

And in Solwezi, all striking civil servants this morning converged in the Boma Conference Hall to be addressed by their union leaders on the current salary negotiations with government.

The workers comprising of nurses, teahers and other public service workers, some carrying placards reading ”no salary increment no work” rejected the proposed 15 percent salary increment, saying it was a mockery.

Civil Servants and Allied Workers Union of Zambia Regional Secretary, Kennedy Musopelo told the irate civil servants that the union leaders in Lusaka are still negotiating with govrenment.

Mr. Musopelo said the civil servants in North-Western Province have vowed not to go for work until government listens to their plight and gives them a block figure increment.

The workers agreed that their unions should not sign 15 percent increment, adding that there is no house in Solwezi that is rented at K200,000.

The strike action by civil servants in the Province has spread to Mufumbwe Disrict where all operations at some government institutions have come to a halt.

Mufumbwe District Commissioner, Robert Muyutu confirmed to ZANIS in Solwezi that the strike action by the workers has caused hardships, especially at Mufumbwe Hospital where the admission of patients has been suspended.

Mr. Muyutu described the situation as serious.

In Chipata Unionized teachers  have gone on strike to press for the conclusion of the negotiations between their Union representatives and government for better pay and conditions of service.

The call for the strike action was agreed upon during a meeting held at Chipata Day Secondary School today.

All the Unionized teachers from Zambia National Union of Teachers (ZANUT), Basic Teachers Union of Zambia ( BETUZ) and Secondary School Teacher Union of Zambia (SESTUZ) have vowed not to go back to work until their demands are met.

The teachers expressed disappointment over government’s failure to conclude the negotiations on time, adding that they would not succumb to any intimidation from their superiors as they have waited for too long for the salary negotiations and conditions of service.

Describing themselves as the engine that drives the country’s development, they expressed sadiness that they are not being motivated.

He said the prolonged delay by government in concluding the salary negotiations and improved conditions of service will only slow down the pace of development in the country.

The teachers said time for conflicting statements over collective bargains is over.

The teachers also called on their union leaders to coordinate if their lobbying is to yield good results.

Civil Servants Union of Zambia (CSUZ) Chairperson Siyabbwete Mudenda assured the three teachers Unions that his union was behind their call for a strike action.

He blamed the union leaders at national level who have failed to make follow-ups on housing allowance which courts of law ruled that civil servants be entitled to K450,000 housing allowance as per 2003 collective agreement.

In Serenje, Civil Servants in Serenje have rejected the 15 percent salary increment offered by government and gone on strike, demanding for a higher percentage.

A Check by ZANIS at Serenje district hospital this morning found only one nurse, a sister in charge, two senior clinical officers working.

One senior clinical officer who refused to be named said there is pressure of work, following the withdrawal of labour by nurses and other medical staff.

And the Civil Servants and Allied Workers Union (CSAWUZ) Serenje Branch, resolved to join the strike at a general meeting held yesterday.

Branch Chairperson, Charity Mumba said the members resolved to reject the 15 percent salary increment offered by government, saying it is too low.

Mrs. Mumba said the members also demanded a K500,000 housing allowance for a lowest paid worker and K100,000 missing lunch allowance.

She said the workers don’t want their representatives in the negotiations to sign for a 15 percent increment and also ensure they fight for better conditions of service.

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political party leaders in the country have politicized the current teachers and nurses’ industrial unrest.

He condemned political leaders that were accusing President Rupiah Banda of neglecting the demands of striking workers by going abroad to attend the economic forum and other meetings to which heads of state were invited.

“What should be made clear is that when the heads of government meet at various summits, they do so to discuss matters of common interest, to find solutions to various challenges, economic or social. What they resolve to do has a bearing in the management of economic and social problems at home,” he explained.

Lt. Gen. Shikapwasha, who is also Minister of Information and Broadcasting Services, further explained that the summits which President Banda has been attending have had Zambia’s interests solved.

He said even when the President was abroad, he was still connected to what was happening at home and was able to direct what should be done to such challenges.

The minister added that the President has ministers who were directly dealing with the issues of industrial unrest in their various ministries.

“The President works through his ministers and he can therefore direct appropriate action through them from any part of the world,” he said, adding that “It is therefore irresponsible to suggest that industrial disputes can only be solved with the intervention and presence of a head of government”.

Lt. Gen. Shikapwasha said the President only participates in a declared dispute requiring his intervention if negotiations for conditions of service and salaries between government and unions have failed.

The Chief Government spokesperson said it was irresponsible and unacceptable for political party leaders, who aspire to lead the country in future, to fan industrial unrests instead of helping government solve them.

Lieutenant General Shikapwasha said in a statement to ZANIS, in Lusaka today that political leaders that were encouraging nurses and teachers to go on strike were in fact undermining government.

“While government appreciates that political parties may have their own ideas about how they would like to deal with the grievances and wish they were in office to attend to them, it is totally unacceptable for such leaders to undermine government by fanning these disputes in order to gain political mileage,” he said.

Lt. Gen. Shikapwasha said government was very concerned about the ongoing strike by teachers and nurses and was therefore working hard to solve the industrial unrest amicably.

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