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Why now is the right time to invest in Zambia by Choolwe Chibomba

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Zambia sits on a fountain of untapped potential. Home to over 376,000 square kilometers of arable land, as well as some of the highest-grade copper deposits in the world, the country is a treasure trove of natural resources. Added to this, 54% of Zambia’s population is of working age (15 – 64), while businesses have access to a market of some 406 million inhabitants via the Common Market for Eastern and Southern Africa (COMESA).

Tragically, and in a pattern seen all too often across Africa, successive governments have failed to tap into this potential. Instead, they saddled Zambia with unsustainable levels of debt while allowing a culture of corruption and venality to proliferate throughout its society.

The election of President Hichilema and the UPND government is therefore rightly heralded as a ‘new dawn’ for Zambia; allowing people and businesses to finally realise Zambia’s abundant potential.

Since this New Dawn government was elected, Zambia’s credit rating has been upgraded to a CCC+ (up from CCC-) by the S&P rating agency, with GDP growth expected to accelerate to 3.7% in 2023. Having negotiated a $1.3 billion extended credit facility from the IMF, as well as a $275 million loan from the World Bank, the government is now tantalisingly close to agreeing a debt renegotiation plan with its external creditors, freeing up vital funding from interest payments to be invested into infrastructure, healthcare, and education.

Businesses are already waking up to the opportunities that this proactive, forward-thinking government is unlocking for them and for the Zambian people. In May, the CEO of Canadian mining giant Barrick Gold, Mark Bristow, described President Hakainde Hichilema as a “breath of fresh air” at the Investing in African Mining Indaba in Cape Town. The company has credited the New Dawn government’s pro-business attitude and progressive tax reforms – including an end to the double tax trap on mining royalties – with plans to potentially extend the life of the company’s Lumwana mine until 2060.

This kind of continued investment would not only sustain jobs at the Lumwana mine but also create opportunities throughout the value chain as the company contracts Zambian firms to provide machinery, equipment, and services to the mine. Furthermore, it would result in significant upskilling for Zambian workers as the mine invests in training and educating its employees.

It is not just mining companies that are taking note. In July Zambian Breweries, which is owned by Belgian drinks company AB InBev, announced it would be investing $80 million into expanding its Lusaka factory, creating 5,000 new jobs in the process. The brewery again cited the “pro-business and pro-investment climate” that President Hichilema’s government has cultivated since coming into office.

These developments represent just the tip of the iceberg, as the government has promised to use its 2023 budget to make Zambia the most attractive investment destination on the continent. This will in turn provide Zambians with the access to capital and financing they need to set up and grow their own businesses.

In manufacturing, the government is promising a 50% suspension on excise duty for clear beer, as well as concessions geared towards stimulating investments in corn starch production. Meanwhile, telecom companies will benefit from the abolishment of the two-tier tax system in favour of a single corporate income rate of 35%, and betting shops will see their presumptive tax reduced by 10%.

These plans to drive investment also include measures to waive visa requirements for visitors from the EU, United Kingdom, United States, and China. This will not only help foster increased tourism but also allow potential investors from wealthy countries to visit Zambia more easily and witness its potential firsthand.

To help promote the breadth of Zambia’s investment potential, the government is supporting the efforts of Zambia Is Back campaign through the Zambia Development Agency (ZDA). Zambia Is Back campaign works to publicise the opportunities being unlocked by the New Dawn government and match up promising Zambian businesses with interested investors around the world.

We are excited to meet with growing businesses in Zambia, as well as investors looking to get involved in this exciting chapter in our nation’s history. In particular, we are looking forward to meeting with investors that want to make a positive impact in Zambia and support the country’s development by promoting education, entrepreneurship, and value-chain addition.

Strictly Personal

Nigeria’s Currency Crisis: Time to deploy Amotekun, By Chinedu Chidi

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I have thought long and hard about just the right solution to the downward spiral of the Naira, and confidently believe I have come up with the perfect response. It is my humble proposal that the time is right to deploy the dreaded Amotekun to arrest this situation. I’ll explain why.

 

Since it is now clear that the Naira’s salvation is not in the hallways of the CBN or the gold-plated policy rooms of Bretton Woods, but in the battle grounds of the nook and cranny of Nigeria, all patriotic Nigerians must now rightly ignore suit-wearing technocrats and search for militant solutions with real promise. As a patriotic citizen, I have risen to this challenge. I would humbly like to thank the patriotic Nigerian leadership, from the CBN to the Executive, for leading us into this new era of mortal combat.

 

Only a few days ago, we were greeted with the live action scene of security operatives combating BDC operators in the nation’s capital, discharging live ammunition in broad daylight in an open civilian space like fearless patriots at the battle front. The EFCC and accompanying security operatives charged forward and backwards as the enemies of state dared challenge them. It was almost like a combat scene from Gibson’s Braveheart. I was touched. I’m not too sure, but I may have heard the humming of the national anthem from these fearless patriots as they battled the savage saboteurs. What a touching moment! Someone who was at the scene mentioned that these patriots recited the pledge before the onslaught. I can’t confirm this for sure, but if it did occur, it would be consistent with the new nationalistic fervour of the Tinubu administration as reported in the news recently that citizens would be required to recite the pledge at events. I also hear the operation is going on in different parts of the country. All these, coming only days after Sahad Stores, a retail supermarket in Abuja, was forcibly shut down for “economic sabotage”, fill me with great joy. Some unpatriotic citizens had shockingly opposed the move, claiming Sahad Stores was one of the good ones, and that deploying force would not resolve the inflation crisis. Cowards and co-conspirators! They’re too distracted by textbook ideas to see that we’re in war. Shame.

 

Normally, I would have recommended the army for this most important national assignment, but they’re overstretched. They’re battling terrorists, bandits, armed robbers, secessionists, their welfare; just about every violent aggressor around. The police would have been my second option but they too are preoccupied and, as some mischievous people claim, have a special DNA for compromise. For these and some other reasons which I will explain, Amotekun has my blessings.

 

I know Amotekun is also seriously engaged with battling bandits in the South West, but they must be pleaded with to spare some personnel for this all-too-important national emergency. Their stealth, daredevil disposition, and my favourite—charms from the gods— will come in handy.

 

I have heard rumours that some of the BDCs hide their stockpile of dollars in forests. This is the domain of the Amotekun warriors. Through their local intelligence gathering and tactical navigation of the forests, they can uncover these dollar chests and win for the country a huge deliverance. Their spiritual protection against wild animals and attacks from dark forces will be very useful here.

 

I am also confident that what has for so long appeared to be the near-impossible goal of finding the dollars some loud-mouthed people claim are hidden by politicians, bank executives and— I struggle to even contemplate it— CBN officials will be spiritually detected by Amotekun. We desperately need this.

 

It was with great joy that I also received the news that our gallant security personnel are now stopping truckloads of food from leaving the country. What took them so long! How can any patriotic businessman think of trade and profit at a time of economic crisis? This beats my imagination. I am even more infuriated by the argument of their unpatriotic defenders that we don’t have food scarcity, just food unaffordability, and that we can’t seriously let them abandon their goods in warehouses while the vast majority of Nigerians can’t purchase them. This is so inconsiderate and sad. Their argument that the exports bring in needed forex at this time of forex crisis is also another textbook nonsense. Shame on them.

 

I am particularly touched by Cardoso’s sincerity and humility. Realizing that the air-conditioned policies have hit the brick wall and that the fight has morphed into street combat, he did not try to deceive the populace about it. This is uncommon (apologies to Akpabio) pragmatism.

 

I want to enjoin the President to rally leaders in the South West towards mass mobilization of Amotekun for this national assignment. We can’t afford to fail!

 

Chinedu Chidi is a public affairs commentator. He can be reached via: chiobe24.cc@gmail.com

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The problem of DRC’s beautiful wife, maize it planted by roadside, By Charles Onyango-Obbo

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Watching the upheaval in the Democratic Republic of Congo in recent days, one is tempted to invoke the African proverb that “the man who marries a beautiful woman and the farmer who grows maize by the roadside have the same problem.”

The police fired tear gas on Monday to disperse protesters who burned tyres and US and Belgian flags near Western embassies and UN offices in the capital Kinshasa, angry about insecurity in eastern Congo.

The protesters claim the West supports Rwanda, which they and their government accuse of backing the M23 rebellion, whose advance could see them seize the strategic border city of Goma in the east.

This is a new phase of what has become an entrenched tradition of the Congolese oscillating between blaming everyone else but themselves for their problems, and demanding that other people solve these problems, including fighting for them.

In recent years — rightly — the Congolese have railed, then attacked, the long-running and ineffectual United Nations Organisation Stabilisation Mission in the Democratic Republic of the Congo (Monusco) for not ending the rebellion in the east.

In late 2022, DRC’s kin in the EAC dispatched the East African Community Regional Force (EACRF) to separate the warring sides. Before long, Kinshasa and the people had risen against them, hounding them to go out to the jungle and fight the rebels for them. At the end of last year, EACRF left DRC with its tail between its legs.

Because the Congolese are our brothers and sisters, and we have a responsibility to love them, we also have a duty to tell them uncomfortable truths that will help them overcome.

So, we will return to our proverb. African proverbs are complicated. First, one needs to know that they passed into society through the mouths of men who were not feminists, so too many of them tend to portray women in bad light.

This one paints a heroic hard-working farmer (although it is mostly women, not men, who work the land in Africa) whose maize is stolen by passers-by, in contrast with the beautiful wife who betrays her husband and falls to the charms of other men.

However, African proverbs are also layered, so there is what they say, and the many things they mean. In this case, that people will covet a good thing — a good crop, a beautiful woman and, if we may add, a handsome, enterprising man. The “problem” here is how to keep your maize, beautiful wife, and enterprising husband. If you are better than all the men who hit on her, your beautiful wife will stay faithfully by your side.

Having your wife, husband, girlfriend or boyfriend run off with someone else can be very hurtful, but if you have a cantankerous truth-telling African aunt or uncle, they will also whisper to you that a partner whom no other man or woman has ever or will ever want is probably not worth having.

In real-world Congo politics, then, the reality is rebels will have friends and allies at home and abroad. Even Uganda’s Lord’s Resistance Army (LRA), as despicable as a rebel group can ever be, had friends outside who backed it.

The thing that should terrify everyone is a rebel group that no one wants to touch with a 10-metre pole, both in the day and night. The opposite is also true of rebels fighting to overthrow a government. If it is a government that doesn’t have a single friend even in the cynical world of geopolitics, then it’s probably worse than a cabal of cannibals.

For Congo, what is left is how to solve this “problem”. To stay with the farmer and the beautiful wife, what the Congolese are doing is like the strapping young man in old Africa who spent all his time attacking his parents, relatives, neighbours, and their friends because they failed to give him cattle to pay a bride price for a wife and build a hut for him to live in with her.

The scale of surrender of agency by many Congolese, including the political class and the government, is unsettling.

It’s partly understandable, too. The unusually brutal Belgian rule; the exploitation of all sorts of vultures for its vast minerals lasting over 100 years now; and an unbroken long spell of corrupt and cruel rule, have broken its self-confidence. The way to come to terms with the scale of failure and remain sane is to externalise all the problems to evil forces.

It has led to national paralysis, a belief that they can’t do much on their own to overcome.

DRC’s neighbours to the east, Uganda and Rwanda, offer good lessons. When President Yoweri Museveni took to the bush with his small band of rebels in 1981, the odds were stacked up against them. The British had a big programme with a special police force; the Tanzanian army that helped overthrow military dictator Idi Amin was on the side of the government, and hardy North Koreans soon got into the fight against them. They still won.

The prospects were even worse for the Rwanda Patriotic Army/Front when it crossed from Uganda and took to treacherous hills in 1990. Apart from Uganda, it was alone against the world, including one of the world’s superpowers at the time, France, which was in bed with the government in Kigali. They suffered setbacks, picked themselves up, and won.

Congo can win, but first, it will have to plant its own maize and fight its war for its own beautiful wife.

Charles Onyango-Obbo is a journalist, writer, and curator of the «Wall of Great Africans». Twitter@cobbo3

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