By Wesley Ngwenya

The new old government or is it the old new government has a lot of challenges along its path. Or rather the new President of Zambia and his cabinet have a huge task in alleviating poverty in this country. It got me to think after my earlier article about Zambians in Diaspora–Why not do government a favor and come up with a few ideas on how they can create employment for the Zambians from Luwingu to Livingstone or from Lundazi to Lukulu?

Not too long ago, I remember mentioning to my friend at Barclays that perhaps 75 percent of the cars driven in Zambia are Japanese. He was quick to correct me and suggested that it was probably 95 percent. 75 or 95 percent that is a lot of Japanese second hand vehicles rolling our streets. Often times, we have to buy these vehicles direct from Japan at expensive prices not to mention the duty tax at the border.

So what can government do to help? If I were government I would sit down make a proposal and jump on the plane head to Osaka or Tokyo to meet the corporate CEOs of Toyota, Honda, Mitsubishi, Isuzu, Mazda, etc. I would propose and remind them that most vehicles driven in Africa are Japanese. Africans have a taste for Japanese vehicles which fair very well in African conditions. As Zambian government we would like to give you an opportunity to open a Toyota Plant in Zambia. This plant will manufacture, assemble cars and distribute them all over the continent considering the strategic geographical location of Zambia (making sure I have a map to show Zambia and the surrounding neighbors who are equally big Toyota buyers).

Following this, I would then highlight the benefits of Toyota establishing a plant in Zambia:

1. Toyota will significantly reduce its administrative costs. Zambian employees will be paid much less than our Japanese counterparts.
2. Toyota will not have to import raw materials such as copper because they are in the backyard.
3. Toyota will increase revenue because Africans can now purchase new cars instead of the used ones.
4. Toyota will increase the profit margin since the overhead costs will be much lower—a great way to stay competitive with this global financial crisis looming.
5. Toyota will create jobs, have an opportunity to participate in local initiatives—good corporate social responsibility.
6. Toyota will receive tax incentives for a specified period provided the workforce is 90 percent Zambian and the company buys materials from Zambian suppliers.

Imagine 60,000 new jobs in Katete with setting up a new Toyota Plant. I am not sure there are even that many people in the town. Suddenly, we’ll all pack our bags and head east. All those mechanics, electricians, engineers, and architects will now have something to smile about. The residents of Katete will now be able to feed their families three meals a day. Finally, they would now afford to buy their own sugar, thank goodness.

It’s very possible, that within five years of the Plant here in Zambia, a lot of other secondary industry would mushroom as a result. There would be a surge in insurance, banks, hotels, restaurants, retail shops, small scale suppliers, garages and other related industries. We do not even have guess how many other new jobs would be created as a result. We will suddenly, see the copper transporters headed east instead of south. And the best part—we all get to buy and drive little new corollas with zero mileage for less than 3,000 dollars. Wow!

Does that sound like a dream to many Zambians? Probably. With planning and the right leaders, is it something feasible? Certainly. Government has to brainstorm and come up with creative ways of creating employment for its citizens. When many Zambians are working it means more taxes are paid. When more taxes are paid it means more money for the government (not to confuse this with politicians) to implement developmental projects. Does that sound like rocket science to our government? Who knows?

The African Development Bank (ADB) has given Zambia a US$24 million concessional loan for budgetary support for next year and 2010.
The loan, whose agreement was signed by ADB and the Government in Lusaka yesterday, was awarded to Zambia under the Second Poverty Reduction Budget Support Programme.
Finance and National Planning Minister, Situmbeko Musokotwane signed for Zambia while ADB resident representative, Vivienne Apopo signed for the bank.
The duo also signed the financing agreement for the Africa Legal Facility.
Dr Musokotwane said the $24 million which would be disbursed in two equal tranches would go towards supporting some of the on-going projects.
“The specific goal of these funds is to contribute to economic growth and poverty reduction through the provision of an enabling environment for private sector development.
“The funds will be disbursed in two tranches of equal amounts. One tranche will come in 2009 and the other will come through in 2010,” Dr Musokotwane said.
He said the Government had been implementing a number of development programmes in the last few years under the Fifth National Development Programme using finances from domestic sources and cooperating partners.
On the African Legal Facility, Dr Musokotwane said the facility was born following the declaration of African finance ministers in 2003 on aid, debt, the International Monetary Fund and HIV/AIDS.
The objective of the facility, he said, was to help heavily indebted poor countries in Africa to address the problem of creditors and enhance negotiation capacity for complex commercial, investment and other transactions.
“The Africa Legal Facility to be established shall be an international institution with full judicial personality under the law of the states who sign the agreement, Zambia inclusive,” he said.
Ms Apopo said the loan signed yesterday would help create a conducive and cost-effective business environment for the private sector, and accountable management and use of public resources.
She said the ADB had made financing commitment to Zambia amounting to $980 million and an additional $387 million was provided as debt relief since the 1970s.
For the Africa Legal Facility, Ms Apopo said the facility would provide legal advice to African countries faced with litigation and noted that countries through suits instituted by vulture funds had paid out about $700 million.
“A case in point in Zambia is the recent case of Donegal Vs Zambia in which judgment was awarded to Zambia,” she said.
Times of Zambia

President, Rupiah Banda, today held a closed door meeting with a delegation from the International Finance Corporation, a World Bank Group, at State House.

The meeting was also attended by World Bank country representative Kapil Kapor, Finance and National Planning Minister, Situmbeko Musokwane, and Presidential Affairs Minister, Gabriel Namulambe.

The closed door meeting, which lasted about half an hour, was called to discuss ways that IFC could employ in working with government to make the Zambian business environment more attractive to investors.

IFC Executive Vice President and Chief Executive Officer, Lars Thunell, said  the IFC delegation is in the country to discuss possibilities for World Bank support to the Zambian economy.He described as fruitful the private discussions held with President Banda and Finance and National Planning Minister, Situmbeko Musokotwane.

Mr Thunell disclosed that IFC was very much likely to expand its presence in Zambia especially in the mining and agriculture sector.

He, further, stated that IFC was discussing with government on effective strategies of making the business environment more attractive.

And Finance Minister, Situmbeko Musokotwane, said government would continue working with IFC in order to attract more foreign investment in the economy.

Mr Musokotwane said government is determined to promote both local and foreign investment to spur national economic growth.

IFC is one of the wings of the World Bank whose focus is to promote private sector investments in any given economy.

It also provides advice to certain sectors of the economy.

President Banda also held another closed door meeting with a group of investors from Korea.

The Korean investors are in the country to explore investment opportunities in various sectors of the economy.

Korea Youth Entrepreneur Association Chairman, Jang Jae Wan, is leading the delegation.The International Finance Corporation, IFC, of the World Bank has indicated that it would expand its presence in Zambia and help government grow the economy.

The MMD in Mwansabombwe Constituency in Kawambwa District has advised Luapula Province Publicity Information Secretary, a Mr. Kapambwe to stop attacking party Spokesperson Ben Tetamashimba.

Constituency Youth Chairman, James Kapota told ZANIS in Mwansabombwe that his members are not happy with the recent attacks on Mr. Tetamanshimba by Mr. Kapambwe in one of the tabloids.

He said insinuating that Mr. Tetamashimba is junior compared to the party’s National Secretary, Katele Kalumba is not welcome.

Mr. Kapota said that Mr. Tetamashimba is capable of advising Dr. Kalumba and that the unfortunate attacks should not be entertained.

He added that Mr. Tetamashimba was among the prominent party members building the MMD and he cautioned all MMD cadres to stick to the party’s constitution Article 9A and 9C.

Public drivers operating on Lusaka’s town centre-Chilenje route yesterday parked their minibuses and damaged others in protest against a traffic police officer whom they alleged has been demanding money from them for any road regulation contravention.
A driver who sought anonymity said the officer was recently transferred from Central Police station to Chilenje and since his relocation, he had been demanding money from them and whoever refused was allegedly threatened with stiff charges.

But acting Inspector General of Police, Francis Kabonde refuted the allegations and warned that the police would not allow anarchy among the drivers because they were risking lives of members of the public.

The drivers, who abandoned the route as early as 04:00 hours, started gathering at selected bus stops where they ambushed any minibus seen carrying passengers as a way of picketing.

Several residents of Chilenje South township and other areas serviced by the route were stranded at various points and some of them could not make it to work while others resorted to walking.

Those at town centre could not reach the township and other areas on the route because no minibus was allowed to operate.

A number of minibuses, mainly belonging to Flash, were damaged and by 08:00 hours about five of them were found parked at Kabwata Police Station with shattered window panes.

A driver talked to said that the drivers operating on the route were angered by a traffic police officer who allegedly demanded a lot of money from them whenever they were found contravening the laws.

On why they were targeting Flash minibuses, the driver alleged the police treated the buses and drivers from the company like “sacred cows.”

Mr Kabonde and Road Transport and Safety Agency (RSTA) director Fredrick Mwalusaka are planning to introduce a law in which road contraveners will be taken to court instead of paying admission of guilt fees to the police.
Mr Kabonde and Mr Mwalusaka said the decision follows the continued complaints over charges, especially among bus operators, which in some cases has brought about
protests.
Mr Kabonde who was speaking to journalists was reacting to yesterday’s protests among bus drivers in Lusaka over the alleged impounding of buses, charging and claims of not being given receipts.
He said so far, police had not received any report of any traffic officer who was alleged to have been over charging minibus drivers and challenged those with evidence to report to his office.
He said following confusions yesterday, he summoned the officer to his office. He produced a receipt book and a number of people who have paid after admitting the charge.
He said the receipts also showed that out of 18 minibuses which were impounded, 15 had paid admission of guilty fees while the other three had not.
He said police officers would not sit and watch such lawlessness. He said police would soon be meeting the owners of the minibuses with a view of finding a lasting solution to what he termed as “life threatening ” behaviour.
And Mr Mwalusaka described the confusion, which erupted yesterday morning as sad because his organisation and drivers representatives had been holding talks over various concerns raised so far.
He said that allowing the courts to rule over the situation would address the matters of payments.
He further said the agency had no plans to increase the users fees and that it would soon be holding a public hearing on the conduct of the minibus drivers.